The primary purpose of an audit is to:
A) assure investors of the wealth of the entity.
B) assure investors of the future profitability of the entity.
C) express an opinion on the truth and fairness of the entity's financial statements.
D) detect fraud by the entity's employees.

Question

Quizplus · Accepted Answer

The primary purpose of an audit is to express an opinion on the truth and fairness of the entity's financial statements. While audits may help to uncover fraud, this is not their primary purpose. Similarly, the wealth and future profitability of the entity are not the focus of the audit, but rather the accuracy and reliability of its financial reporting.

The Primary Purpose of an Audit Is To