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November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs

What is the main objective of an external audit of financial statements?

A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
B. To prepare the financial statements of the entity
C. To guarantee that the entity will remain profitable in the future
D. To detect and prevent every fraud in the entity
Correct Answer: A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework

The auditor gives an opinion on the financial statements. Preparing them is management's job, and an audit gives reasonable (not absolute) assurance.

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