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 state
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. This includes examining evidence and conducting procedures to gain reasonable assurance that financial statements are free from material misstatement, whether due to fraud or error. While detection of fraud may be a component of the audit function, it is not the essential purpose. Examination of individual transactions to certify their validity and assurance of consistent application of correct accounting procedures are also not the essential purpose of the audit function.

Which of the Following Is the Essential Purpose of the Audit