The audit report is important to the audit opinion formulation process since it communicates relevant information to the financial statement users, both internal and external, resulting from the audit. a. True b. False

A) True

Explanation:

Auditing standards require that the auditors state whether the financial statements are presented fairly in accordance to financial reporting regulations. The auditor must provide his/er opinion based on his/her findings, or state that an opinion cannot be given.

Financial statement users, both internal (top management and board of directors) and external (investors, shareholders, banks, IRS, SEC and other government entities) rely on the auditor's statement regarding the fairness or not of the financial statements.