XYZ Corporation, a multinational company with operations in various sectors, is undergoing its annual external audit. The external audit team, composed of experienced auditors, is tasked with ensuring the accuracy and reliability of XYZ Corporation's financial statements. XYZ Corporation has complex business transactions due to its international presence, making the audit process crucial for stakeholders' confidence.

Case Scenario:

During the audit, the external auditors identify several areas of focus, including revenue recognition, valuation of intangible assets, and compliance with regulatory requirements in different jurisdictions. Additionally, the auditors note that XYZ Corporation recently implemented a new enterprise resource planning (ERP) system, impacting the internal control environment.

The auditors conduct substantive testing, analyze financial ratios, and review management representations to gain assurance regarding the financial statements' accuracy. They also assess the effectiveness of the internal control system, considering the changes introduced by the ERP system implementation.

Objective Type Question:

Given the case scenario and the importance of the audit process for XYZ Corporation, select the most appropriate option for the following question:

What is the primary objective of the external audit for XYZ Corporation?

A. Ensuring compliance with internal policies

B. Detecting and preventing fraud and errors

C. Recommending business strategies for future growth

D. Evaluating the efficiency of day-to-day operations

Ensure to choose the option that aligns with the fundamental purpose of an external audit in the context of XYZ Corporation's financial statements and the complexities of its business operations.