The correct answer is: B. Examination of financial information
Auditing is the process of examining financial information to ensure that it is accurate and complete. This includes reviewing the company’s financial statements, as well as its internal controls. The goal of auditing is to provide assurance to investors and other stakeholders that the financial information is reliable.
Option A is incorrect because reporting financial information is not the same as auditing it. Reporting financial information involves preparing and presenting the information in a way that is understandable to users. Auditing, on the other hand, involves examining the information to ensure that it is accurate and complete.
Option C is incorrect because preparing financial statements is not the same as auditing them. Preparing financial statements involves gathering and analyzing financial data and then presenting it in a way that is understandable to users. Auditing, on the other hand, involves examining the information to ensure that it is accurate and complete.
Option D is incorrect because maintaining ledger accounts is not the same as auditing them. Maintaining ledger accounts involves recording financial transactions and then updating the accounts to reflect those transactions. Auditing, on the other hand, involves examining the information to ensure that it is accurate and complete.