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Learning Objective $03-06$ Explain the purpose of an audit and describe the content of the audit report.

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The purpose of an audit is to provide a professional, independent opinion as to whether or not the financial statements are prepared in conformity with generally accepted accounting principles. The standard audit report of a public company identifies the financial statements and their dates, issues an opinion on whether those financial statements are presented fairly, explains the basis for that opinion, and states that the financial statements are the responsibility of management. Explanatory language and emphasis of matters might be included.