The correct answer is: B. Opinion.
An auditor’s report is an independent professional opinion on the fairness of the financial statements. The auditor’s opinion is based on their assessment of the financial statements, which includes their evaluation of the accounting principles used, the underlying accounting records, and the overall presentation of the financial statements.
The auditor’s opinion is not a guarantee of the correctness of the financial statements. The auditor’s responsibility is to express an opinion on the financial statements, not to guarantee their correctness. The auditor’s opinion is based on the evidence that they have gathered, and there is always a risk that the financial statements may contain errors or omissions.
The auditor’s opinion is an important part of the financial reporting process. It provides users of the financial statements with an independent assessment of the fairness of the financial statements. The auditor’s opinion helps users to make informed decisions about the company.
Here is a brief explanation of each option:
- A. Decision: The auditor does not make a decision on the financial statements. The auditor’s responsibility is to express an opinion on the financial statements, not to make a decision on their fairness.
- B. Opinion: The auditor’s opinion is an important part of the financial reporting process. It provides users of the financial statements with an independent assessment of the fairness of the financial statements. The auditor’s opinion helps users to make informed decisions about the company.
- C. Guarantee of the correctness of accounts: The auditor does not guarantee the correctness of the financial statements. The auditor’s responsibility is to express an opinion on the financial statements, not to guarantee their correctness.