MANAGEMENT

Detailed explanation-1: -What Is an Audit? The term audit usually refers to a financial statement audit. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent.

Detailed explanation-2: -The incorrect statement is Audit is done by a dependent qualified person. The definition of the audit itself states that it is an independent examination and independent examination can only be conducted by an independent, impartial person/body who has no vested interest in the business/entity being audited.

Detailed explanation-3: -An audit report is a document that details a company’s financial statement status. It is written by an auditor and includes their opinion of the area of process they are auditing.. An auditor’s opinion can be clean, qualified, adverse or disclaimer.

Detailed explanation-4: -Audited financial statements are those that have been reviewed and verified as accurate by a Certified Public Accountant (CPA). Any company may require audited statements for internal use or to present to external stakeholders. The company prepares the financial statements and presents them to a CPA for assessment.