The fundamental objective of the audit of a company is to_____________?
Correct answer: C. Attest to the credibility of the company's accounts Hire An Accountant
- A. Protect the interests of the minority shareholders
- B. Detect and prevent errors and fraud
- C. Attest to the credibility of the company's accounts Hire An Accountant
- D. Assess the effectiveness of the company's performance
Explanation
The auditor's fundamental objective is to form and report an independent opinion on whether the financial statements are credible and fairly presented. Detecting every error or fraud is not the primary objective, although audit procedures may uncover them.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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