Question

An examination of the financial statements of a business to ensure that they conform to generally accepted accounting principles is called:_______
a. A certification
b. An audit
c. A verification
d. A validation

Answer 1

Answer:

The correct answer is letter "B": An audit.

Explanation:

An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent. An audit is often used to mean an examination of a taxpayer's records by the Internal Revenue Service (IRS).