When a CPA performs an Audit, what is their primary activity?

The primary activity of a CPA during an audit is to examine and express an opinion on the financial statements. This process involves a systematic review of the financial records and controls of a company to assess their accuracy and compliance with accounting standards. Through this examination, the CPA gathers evidence that forms the basis for their opinion on whether the financial statements present a true and fair view of the company's financial position.

Auditors look for any discrepancies or misrepresentations in financial data and evaluate the overall presentation of the financial statements. Their opinion is crucial for stakeholders, such as investors and creditors, who rely on the integrity of those financial statements for decision-making purposes.

This role is distinctly different from merely preparing financial statements, issuing tax guidance, or providing financial forecasting, which are separate functions that do not encapsulate the comprehensive review and validation aspect intrinsic to an audit.