ICANAudit & AssuranceNature and Objectives of Assurance2023

The objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are:

AFree from all errors
BPrepared, in all material respects, in accordance with the applicable financial reporting frameworkCORRECT
CA guarantee of the company's future viability
DCertified as accurate by the directors
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
ISA 200 defines the objective as obtaining reasonable assurance about whether the financial statements as a whole are free from material misstatement, enabling an opinion on whether they are prepared in accordance with the applicable framework. An audit is not a guarantee of accuracy or of future viability.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Audit & Assurance questions

ICAN Audit & Assurance has thousands more questions like this — with Worked answers on every one.

Start practicing free →See all Audit & Assurance questions