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    Question

    As per SA 200, the objective of an audit of financial

    statements is to:
    A Detect fraud and error. Correct Answer Incorrect Answer
    B Provide absolute assurance that the financial statements are free from material misstatement. Correct Answer Incorrect Answer
    C Express an opinion on whether the financial statements are prepared in all material respects in accordance with an applicable financial reporting framework. Correct Answer Incorrect Answer
    D Prepare and present the financial statements of the entity. Correct Answer Incorrect Answer
    E Guarantee the future viability of the entity. Correct Answer Incorrect Answer

    Solution

    SA 200 states that the purpose of an audit is to enhance the degree of confidence of intended users in the financial statements. This is achieved by the auditor expressing an opinion on whether the statements are prepared, in all material respects, in accordance with the applicable framework.

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