alleryStart learning →Why do audit reports matter to users of financial statements?
AThey raise statement credibility
BThey guarantee future profits
CThey replace internal controls
DThey fix the dividend rate
Answer & Solution
Correct answer: A. They raise statement credibility
An independent opinion makes the statements more credible and investors rely on them more.
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Related questions
Control risk is higher where what is poorly defined?The amended 2020 IASB materiality definition added which word to omitting and misstating?Planning materiality must be set when, according to ISA 320?Why might a small misstatement still be material?When is materiality reassessed in practice before the report is issued?How is audit risk related to the materiality level set?Audit work after a hard close, covering the remaining months, is called what?Effective internal controls do what to the substantive work needed?