What is the primary objective of the independent auditor's report on financial statements?
A)To report on all incidence of fraud.
B)To assist the board in evaluating management's effectiveness.
C)To express the auditors opinion on the internal controls.
D)To give credibility to management's prepared financial statements.

Question

Quizplus · Accepted Answer

The primary objective of the independent auditor's report on financial statements is to give credibility to management's prepared financial statements. The auditor expresses an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework, such as Generally Accepted Accounting Principles (GAAP). The auditor's report also provides assurance to users of the financial statements that the auditor has followed professional standards in conducting the audit.

What Is the Primary Objective of the Independent Auditor's Report