Which of the following best describes the main reason that independent auditors report on a company's financial statements?
A)Management fraud may exist within the company and it is likely that the independent auditors will detect it.
B)Users of financial statements need confidence in the numbers they base their decisions on.
C)Misstated account balances may be corrected as the result of the independent audit work.
D)The accounting system from which the financial statements are derived may have a poorly designed system of internal control.

Question

Quizplus · Accepted Answer

Independent auditors report on a company's financial statements to provide users with confidence in the numbers they base their decisions on. The auditor's report indicates that the financial statements are free from material misstatement and can be relied upon by users. While the auditor may detect management fraud, correct misstated account balances, or identify weaknesses in internal control, the primary reason for an audit is to enhance the credibility of the financial statements for their intended users.

Which of the Following Best Describes the Main Reason That