Question

a part of accounting that involves only recording of economic events.
conducted by the securities and exchange commission to ensure that registered financial statements are presented fairly.
the examination of financial statements by a cpa in order to express an opinion on their fairness.
an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems.
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Explanation:

We analyze each option:

• Option 1: Recording economic events is bookkeeping, not the description here.
• Option 2: SEC oversight is not the same as the examination by a CPA for fairness (which is auditing).
• Option 3: Auditing is the examination of financial statements by a CPA to express an opinion on their fairness, so this matches.
• Option 4: This describes managerial accounting, not auditing.

Answer:

C. the examination of financial statements by a CPA in order to express an opinion on their fairness.