Auditing and accounting are concerned with which of the following financial statements?

Solution (By Examveda Team)

The correct answer is Option D: All of the above.
Let's break down why:
Option A: Auditing uses the theory of evidence to verify the financial information made available by accountancy
Think of it like this: Accountants create financial statements, and auditors act like detectives.
They use evidence to check if those statements are accurate and follow the rules.
Option B: Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant
Auditing adds trust and quality to financial statements.
When a company's financial statements are audited, people have more confidence in them because an independent expert has checked them.
Option C: Auditor should have a thorough knowledge of accounting concepts and convention to enable opinion on financial statements
To give an opinion on the fairness of financial statements, an auditor needs to understand accounting very well.
They need to know the rules and principles that accountants follow.
Since all three statements are true about the relationship between auditing and accounting, the answer is All of the above.