The basic purpose of a financial statement audit is to
A) Detect fraud.
B) Examine individual transactions so that the auditor may certify as to their validity.
C) Provide assurance regarding whether the client's financial statements are fairly stated.
D) Assure the consistent application of correct accounting procedures.

Question

Quizplus · Accepted Answer

The basic purpose of a financial statement audit is to provide assurance regarding whether the client's financial statements are fairly stated. While detecting fraud and assuring the consistent application of correct accounting procedures are certainly important aspects of an audit, they are not the primary purpose. Additionally, examining individual transactions is not necessary as the audit is conducted on the financial statements as a whole.

The Basic Purpose of a Financial Statement Audit Is to