Auditing and Assurance:

Auditing and assurance services are essential components of the financial reporting process. Auditing involves the examination of financial statements and other financial information to ensure accuracy, completeness, and compliance with relevant accounting standards and regulations. Assurance services encompass a broader range of activities aimed at providing confidence to stakeholders regarding the reliability and integrity of financial information, internal controls, and business processes.

Objective Question:

Which of the following statements best describes the role of auditing in financial reporting?

a$)$ Auditing ensures that financial statements are prepared in accordance with management's objectives.

b$)$ Auditing involves the independent examination of financial statements to provide assurance regarding their reliability and adherence to accounting standards.

c$)$ Auditing is primarily concerned with maximizing profits and minimizing expenses for the organization.