The Purpose of an Audit Is to

question 125

Multiple Choice

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

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to penalties.

Offer

A proposal by one party to enter into a legally binding agreement with another party.

Unilateral Contract

A contract in which only one party promises to perform without requiring a reciprocal promise to act from the other party.

Bilateral Contract

A legally binding agreement involving two parties where each is obligated to fulfill their respective promises or actions.