Which of the following best describes the purpose of an audit?
Posted: Sat Aug 07, 2021 7:02 am
A) To prove the accuracy of an entity's financial statements.
B) To lend credibility to an entity's financial statements.
C) To audit every transaction that an entity entered into.
D) To establish that a corporation's stock is a sound investment.
Answer: B
Explanation: An audit is an independent review of an entity's financial statements. The result of
an audit is an audit report that lends credibility to these financial statements.
B) To lend credibility to an entity's financial statements.
C) To audit every transaction that an entity entered into.
D) To establish that a corporation's stock is a sound investment.
Answer: B
Explanation: An audit is an independent review of an entity's financial statements. The result of
an audit is an audit report that lends credibility to these financial statements.