The basic purpose of an audit is to:
A)Assure outsiders that financial statements are prepared in conformity with GAAP.
B)Provide as much useful information to decision makers as possible,regardless of cost.
C)Record changes in the financial position of an organization by applying the concepts of double entry accounting.
D)Meet an organization's need for accounting information as efficiently as possible.

Question

Quizplus · Accepted Answer

The basic purpose of an audit is to assure outsiders that financial statements are prepared in conformity with Generally Accepted Accounting Principles (GAAP). While providing useful information to decision makers and recording changes in financial position are important functions of accounting, they are not the primary purpose of an audit. The efficiency of meeting an organization's need for accounting information is also not a primary purpose of an audit.

The Basic Purpose of an Audit Is To