Question

Which of the following meets the attestation standards' definition of an examination?

A) Reviewing financial statements and providing assurance without expressing an opinion.
B) Conducting an audit to express an opinion on the fairness of financial statements.
C) Offering advisory services related to financial management.
D) Providing expert testimony in a legal proceeding without evaluating financial information.

Answer 1

An examination, according to the attestation standards, refers to the process of conducting an audit to express an opinion on the fairness of financial statements.

Step-by-step explanation:

An examination, according to the attestation standards, refers to conducting an audit to express an opinion on the fairness of financial statements. This process involves a thorough examination of the company's financial records, transactions, and internal controls to determine if they are presented fairly and accurately.

Option B, conducting an audit to express an opinion on the fairness of financial statements, meets the definition of an examination. Auditors perform detailed testing and verification procedures to gather sufficient evidence and form an opinion on the financial statements.

Option A is incorrect because reviewing financial statements and providing assurance without expressing an opinion does not meet the level of examination required by the attestation standards.