The objective of the ordinary audit of financial statements is the expression of an opinion on

Solution (By Examveda Team)

Correct Answer: A: The fairness of the financial statements

Let's break down why this is the right answer and why the others aren't the best fit:

Option A: The fairness of the financial statements - This is the primary goal of an audit. Auditors want to determine if the financial statements present a fair view of the company's financial position and performance, meaning they are free from material misstatement and comply with accounting standards.

Option B: The accuracy of the financial statements - While accuracy is important, an audit focuses more on 'fairness' rather than absolute accuracy. It's impractical and often impossible to guarantee that every single transaction is 100% accurate. Auditors focus on material misstatements, which are errors that could influence decisions.

Option C: The accuracy of the annual report - The annual report contains more than just financial statements. It also includes management's discussion and analysis, and other information. Audits specifically target the financial statements.

Option D: The balance sheet and income statement - While the balance sheet and income statement are important components, an audit covers all the financial statements which also includes the statement of cash flows and statement of changes in equity (or retained earnings). The audit opinion applies to the complete set of financial statements.

In summary: The core objective of an audit is to provide an opinion on whether the financial statements 'fairly present' the company's financial position and performance.