Which functions do audit reports serve for the capital markets?
A) Enhance confidence in financial statements.
B) Provide guarantees regarding the quality of investments.
C) Provide assurance that financial statements and management's reports on internal control over financial reporting provide reliable information.
D) Both a and c

Question

Quizplus · Accepted Answer

Audit reports serve to enhance confidence in financial statements and provide assurance that financial statements and management's reports on internal control over financial reporting provide reliable information. However, audit reports do not provide guarantees regarding the quality of investments as this is beyond their scope.

Which Functions Do Audit Reports Serve for the Capital Markets