Audit reports accompanying a financial statement serve as a guarantee that an investment in the audited company is free of risk.

Question

Quizplus · Accepted Answer

Audit reports do not provide a guarantee that an investment in the audited company is free of risk. The audit report provides an opinion on whether the financial statements are prepared in accordance with accounting standards and provide a true and fair view of the company's financial position. However, there are still risks associated with investing in any company, and an audit report does not eliminate those risks.

Audit Reports Accompanying a Financial Statement Serve as a Guarantee