ACCA BT · Chapter 8 · Question 1 of 11
What is the main objective of an external audit of a company's financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) To express an independent opinion on whether the financial statements give a true and fair view
Explanation
The external auditor's objective is to obtain reasonable assurance and report an opinion on whether the financial statements are free from material misstatement and give a true and fair view. Auditors do not guarantee detection of all fraud, the directors are responsible for preparing the statements, and operational efficiency reviews are typically an internal audit activity.
More Audit, internal control and fraud MCQs
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