The Basic Purpose of an Audit Is To

question 103

Multiple Choice

The basic purpose of an audit is to:

• A)Assure outsiders that financial statements are prepared in conformity with GAAP.
• B)Provide as much useful information to decision makers as possible,regardless of cost.
• C)Record changes in the financial position of an organization by applying the concepts of double entry accounting.
• D)Meet an organization's need for accounting information as efficiently as possible.

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Definitions:

Backward-looking Reasons

Justifications for actions or decisions that are based on events, information, or values from the past.

Act Consequentialism

A moral theory that assesses the morality of actions based on their outcomes or consequences.

Act Consequentialism

An ethical theory that judges the moral worth of an action based solely on the outcomes or consequences of that action.

Case-by-case Basis

An approach to decision-making that involves evaluating each situation individually rather than applying a general rule.