Final answer:
The correct answer is that management's assertions are closely related to the audit objectives used in financial auditing. Auditors base their audit planning and objectives on these assertions to assess the financial statements.
Step-by-step explanation:
The true statement among the options provided is B) Management's assertions follow and are closely related to the audit objectives. The management is responsible for the preparation and fair presentation of the financial statements, and it makes several assertions regarding the amounts and disclosures in the financial statements. These assertions relate to transactions and events, account balances, and presentation and disclosures. Auditors use these assertions to develop audit objectives and to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Audit objectives are derived from these assertions and guide the direction of the audit process. Conversely, auditors' primary goal is not specifically to find fraud but to express an opinion on the fairness of the financial statements as a whole. It is also inaccurate to say that obtaining assurance for each class of transaction and for the ending balance of the related account is the most effective and efficient way to conduct an audit; auditors assess risk and may focus on areas with a higher risk of material misstatement. Finally, assertions about presentation and disclosure actually deal with aspects beyond just whether accounts are included at appropriate amounts; they also cover whether all the information that should be disclosed has been disclosed and whether it's presented in an understandable manner.