Why is the audit report important in the analysis of a company?
A) The auditors are an independent third party expressing an opinion on the fairness of the ﬁnancial statements.
B) It guarantees the accuracy of the information in the ﬁnancial statements.
C) The auditors are hired by management to assess the appropriateness of the accounting policies chosen.
D) It guarantees the accuracy of the internal controls of the company.

Question

Quizplus · Accepted Answer

The audit report is important because it provides an independent third-party opinion on the fairness and accuracy of the financial statements, which helps stakeholders make informed decisions.

Why Is the Audit Report Important in the Analysis of a Company