Which of the following is the essential purpose of the audit function?
A)Detection of fraud.
B)Examination of individual transactions to certify as to their validity.
C)Determination of whether the client's financial statement assertions are fairly stated.
D)Assurance of the consistent application of correct accounting procedures.

Question

Quizplus · Accepted Answer

The essential purpose of the audit function is to determine whether the client's financial statement assertions are fairly stated. While fraud detection may be a part of the audit process, it is not the primary purpose. Similarly, the examination of individual transactions and assurance of consistent application of correct accounting procedures are important components of auditing but are not the essential purpose.

Which of the Following Is the Essential Purpose of the Audit