The correct answer is C. Verify and report on the state of affairs of the business.
An audit is an independent examination of financial statements and other records to assess whether they are accurate and complete. The primary objective of an audit is to provide assurance to users of financial statements that the statements are free from material misstatement. This means that the auditor is not responsible for detecting all errors or fraud, but only those that are material, which could affect the decisions of users of the financial statements.
The auditor will verify the accuracy of the financial statements by reviewing the underlying records and transactions. They will also assess the appropriateness of the accounting policies used and the overall presentation of the financial statements. The auditor will then issue an audit report that expresses their opinion on whether the financial statements are free from material misstatement.
Option A is incorrect because the auditor is not responsible for verifying the value of assets. This is the responsibility of the management of the company.
Option B is incorrect because the auditor is not responsible for verifying liabilities. This is also the responsibility of the management of the company.
Option D is incorrect because the auditor is not responsible for appointing auditors. This is the responsibility of the shareholders of the company.