The auditor's opinion should relate to which statement?

The auditor's opinion should relate to which statement?

• A. True and fair view of accounts
• B. Accurate tax computations
• C. Management's internal controls
• D. Compliance with financial targets

Answer: (A)

In external audits, the opinion is about the financial statements as a whole — whether they present a true and fair view of the entity’s financial position, performance, and cash flows in accordance with the applicable financial reporting framework. This is the core purpose of an audit: to assess the accuracy and presentation of the financial statements themselves. Tax computations, while they may influence the figures in the financial statements, are not the primary subject of the auditor’s opinion. The opinion focuses on the overall presentation of the financial statements, not on certifying tax calculations in isolation. Internal controls may be evaluated and reported on separately, but the formal opinion remains about the financial statements, not a blanket statement about the control system. Financial targets are management’s objectives and do not constitute a financial statement assertion the auditor attests to.

In external audits, the opinion is about the financial statements as a whole — whether they present a true and fair view of the entity’s financial position, performance, and cash flows in accordance with the applicable financial reporting framework. This is the core purpose of an audit: to assess the accuracy and presentation of the financial statements themselves.

Tax computations, while they may influence the figures in the financial statements, are not the primary subject of the auditor’s opinion. The opinion focuses on the overall presentation of the financial statements, not on certifying tax calculations in isolation. Internal controls may be evaluated and reported on separately, but the formal opinion remains about the financial statements, not a blanket statement about the control system. Financial targets are management’s objectives and do not constitute a financial statement assertion the auditor attests to.