The correct answer is: C. Both A and B
An audit is an independent examination of financial statements and other records to assess whether they are accurate and complete. The main objective of an audit is to express an opinion on the financial statements. This opinion is based on the auditor’s assessment of the risk of material misstatement in the financial statements.
The auditor also has a responsibility to detect and prevent fraud and error. This is done by reviewing the financial statements and other records for evidence of fraud and error. The auditor also interviews management and other employees to obtain information about the company’s internal control system.
The type of audit does not affect the main objective of the audit. The main objective of an audit is always to express an opinion on the financial statements and to detect and prevent fraud and error.
Here is a brief explanation of each option:
- Option A: Expression of opinion
The auditor’s opinion is a statement about the fairness of the financial statements. The auditor’s opinion is based on the auditor’s assessment of the risk of material misstatement in the financial statements.
- Option B: Detection and prevention of fraud and error
The auditor has a responsibility to detect and prevent fraud and error. This is done by reviewing the financial statements and other records for evidence of fraud and error. The auditor also interviews management and other employees to obtain information about the company’s internal control system.
- Option C: Both A and B
The main objective of an audit is to express an opinion on the financial statements and to detect and prevent fraud and error.
- Option D: Depends on the type of audit
The type of audit does not affect the main objective of the audit. The main objective of an audit is always to express an opinion on the financial statements and to detect and prevent fraud and error.