Which of the following is a characteristic of a financial audit?
A) It is conducted by an outside certified public accountant.
B) It is usually performed every month.
C) It is done for evaluating the effectiveness of controls.
D) It is used to study the basic operations of a company.

Question

Quizplus · Accepted Answer

A financial audit is usually conducted by an outside certified public accountant to provide an independent and objective opinion on the financial statements of a company. The purpose is to ensure that the financial statements are fairly presented in accordance with the accounting standards and that there are no material misstatements or fraud. Option B is incorrect because financial audits are usually performed on an annual basis or at the end of a reporting period, not every month. Option C is partially correct because one purpose of a financial audit is to evaluate the effectiveness of controls, but it is not the only purpose. Option D is also incorrect because a financial audit is not used to study the basic operations of a company, but rather to examine the financial statements.

Which of the Following Is a Characteristic of a Financial