Which of the following is an objective of the external audit of a company's financial statements?
A)To provide a forecast of the company's future earnings.
B)To assure no fraud has been committed by the company's management.
C)To provide credibility that the financial statements are fairly presented.
D)To detect all accounting errors made by the accounting system and employees.

Question

Quizplus · Accepted Answer

The primary objective of an external audit is to provide credibility that the financial statements are fairly presented. While an external audit may help detect fraud, it is not the primary objective. Providing a forecast of future earnings or detecting all accounting errors are also not objectives of an external audit.

Which of the Following Is an Objective of the External