Which of the following represents one of the purposes of the Auditor's Report?
A)To provide a place for management to justify questionable items in the statements.
B)To provide comparative ratios for the company's financial data
C)To provide the CPA's opinion of the fairness of the financial statements.
D)To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

Question

Quizplus · Accepted Answer

The main purpose of the Auditor's Report is to provide the CPA's opinion on the fairness of the financial statements. Option A is incorrect because the Auditor's Report is not a forum for management to justify questionable items; rather, management's explanation should be provided in the notes to the financial statements. Option B is also incorrect because the Auditor's Report does not provide comparative ratios. Option D is partially incorrect as the Auditor's Report provides an opinion on the financial statements, but it is not intended to provide full disclosure of all the facts relevant to the company's results and financial position.

Which of the Following Represents One of the Purposes of the Auditor's