What is the primary objective of the independent auditor's report on financial statements?
A)To report on all instances of fraud.
B)To assist the board in evaluating management's effectiveness.
C)To attest to the credit-worthiness of the client.
D)To give credibility to management's prepared financial statements.

Question

Quizplus · Accepted Answer

The primary objective of the independent auditor's report on financial statements is to give credibility to management's prepared financial statements. The auditor provides an opinion on whether the financial statements are presented fairly in all material respects, in accordance with the applicable financial reporting framework. The auditor's report also helps users of the financial statements in assessing their reliability and usability. The auditor is not responsible for detecting all instances of fraud and does not provide an opinion on the creditworthiness of the client. The auditor's report may assist the board in evaluating management's effectiveness, but this is not its primary objective.

What Is the Primary Objective of the Independent Auditor's Report