The purpose of an audit is to:
A)determine whether or not a company is a good investment.
B)render an opinion on the fairness of the statements.
C)determine whether or not a company complies with income tax regulations.
D)determine whether or not a company has a good credit risk.

Question

Quizplus · Accepted Answer

The main purpose of an audit is to render an opinion on the fairness of the financial statements. This includes assessing whether the statements are prepared in accordance with generally accepted accounting principles (GAAP) and whether they accurately reflect the financial position and performance of the company. While an audit can provide information relevant to investment decisions, credit risk assessment and compliance with tax regulations, these are not the primary objectives of an audit.

The Purpose of an Audit Is To