What is the core purpose of an external financial audit
What is the core purpose of an external financial audit?
A. Detect all frauds in the entity
B. Provide reasonable assurance that financial statements are free from material misstatement
C. Guarantee the profitability of the entity
D. Evaluate internal control efficiency absolutely
Answer: B
Explanation: External audit provides reasonable (not absolute) assurance of material misstatement absence, instead of detecting all frauds or guaranteeing business profits.
