Audits of financial statements are an important part of the accounting process to ensure integrity in financial reporting.

a. What is the purpose of an audit?

b. As an external user of accounting information, what meaning would you attach to an audit that concludes that the financial statements are fairly presented in conformity with generally accepted accounting principles?

c. Would your interest in investing in this same company be affected by an auditor’s report that concluded the financial statements were not fairly presented? Why or why not?