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Question 244

Which of the following is the primary purpose of financial statement audit engagements?

To assess the efficiency and effectiveness of the accounting department.

To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.

To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.

To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.

Correct Answer: C

The primary purpose of financial statement audit engagements is to provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles. This ensures that the financial statements accurately and fairly represent the organization's financial position, in accordance with established accounting standards.

Discussion

KonradKOption: C

ok C is right but this answer does not address the question as answer gives some clues to compliance with GAAP and question asks for primary purpse of financial audit not compliance audit over financial statements prepared by a given department