Asked by Justice Johnson on May 26, 2024

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Verified

The purpose of an audit is to

A) determine whether or not a company is a good investment
B) render an opinion on the fairness of the statements
C) determine whether or not a company complies with corporate social responsibility
D) determine whether or not a company is a good credit risk

Audit

A systematic examination and evaluation of financial records or transactions of an entity to ensure accuracy, compliance with standards, or regulations.

Investment

The allocation of resources, such as capital or time, in expectation of generating a future return or benefit.

Corporate Social Responsibility

Refers to business practices involving initiatives that benefit society and demonstrate care for the environmental and social impacts of a company's operations.

  • Recognize the importance and purpose of an audit.
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Verified Answer

AB
Aldrouine BrenelusMay 26, 2024
Final Answer :
B
Explanation :
The purpose of an audit is to provide an opinion on the fairness of a company's financial statements. This opinion is provided by an independent auditor who examines the company's financial records and ensures they are accurate and comply with accounting principles. The audit helps to provide assurance to investors and other stakeholders that the financial statements are reliable and can be trusted. The other choices (A, C, and D) are not the primary purpose of an audit.