Which of the Following Is Correct with Regard to Auditing

Which of the following is correct with regard to auditing?

A) An audit focuses specifically on whether the inventory the company claims it has is actually there.
B) Companies do not normally have to supply audited financial statements when they apply for loans or when selling stock.
C) Audits determine if the firm has controls in place to prevent errors or fraud from going undetected.
D) Auditors generally do not have to examine documents such as cancelled cheques, payroll record, and cash receipts in order to conduct their audit.
E) Auditors ensures that the financial state of the company will be accurately reported.