An audit is best defined as:
A) A thorough checking of financial transactions to ensure they are recorded correctly
B) A certification by an independent accountant that the financial statements are true and correct
C) The production of financial statements that comply with legislation, accounting standards and present a true and fair view (or present fairly)
D) An examination of accounting records of a company carried out by an independent accountant to ensure that the financial statements present a true and fair view (or present fairly)

Question

Quizplus · Accepted Answer

An audit involves an independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon. It ensures that the financial statements prepared by the organization present a true and fair view of its financial performance and position.

An Audit Is Best Defined As