Audits conducted by external accountants express an opinion:
A)that evaluates the effectiveness of management.
B)that taxing authorities use to ensure that the correct amount of tax owing has been calculated.
C)that gives investors confidence their investment is not at risk.
D)on whether or not the financial statements fairly reflect the economic events that occurred during the accounting period.

Question

Quizplus · Accepted Answer

External accountants conduct audits to express an opinion on whether the financial statements accurately represent the company's financial position and operations, in accordance with the relevant accounting standards. This helps ensure the reliability of financial information for users such as investors, creditors, and other stakeholders.

Audits Conducted by External Accountants Express an Opinion