Final answer:
The audit process enhances the degree of confidence in financial statements by ensuring their accuracy and fairness, which increases their credibility among stakeholders. The option (A) is correct.
Step-by-step explanation:
The audit process enhances the degree of confidence that intended users place in the financial statements. By conducting an audit, auditors examine the financial records and statements of an entity to provide an opinion on whether the information presented is true and fair.
This opinion helps to assure external stakeholders, such as investors, creditors, and regulators, that the financial statements accurately reflect the company's financial position and performance. This independent verification increases the credibility of the financial statements and can lead to greater trust and reliance on them by the intended users. Therefore, option (A) is correct.