An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.

Question

Quizplus · Accepted Answer

An audit is a review of a company's financial statements and accounting records to assess whether they are accurate and comply with generally accepted accounting principles (GAAP). The auditor examines the financial statements, performs tests and procedures to ensure their accuracy and traceability, and issues an opinion on their conformity to GAAP.

An Audit Examines Whether a Firm's Financial Statement Conforms to Generally