The purpose of the financial statement audit is for users to be able to ascertain the __________ and __________ of the financial statements of an organisation.
A)~ credibility;reliability
B)trustworthiness;accuracy
C)correctness;objectivity
D)None of the options is correct.

Question

Quizplus · Accepted Answer

The audit aims to provide assurance that the financial statements are both credible (worthy of belief) and reliable (free from material misstatement). Therefore, option A, credibility and reliability, is the best choice. Option B, trustworthiness and accuracy, is similar but not as comprehensive as A. Option C, correctness and objectivity, is not entirely correct as objectivity is a characteristic of auditors and not financial statements. Option D is clearly incorrect as there is a purpose for the audit.

The Purpose of the Financial Statement Audit Is for Users