Is the responsibility of external auditors solely to express an opinion on the truthfulness of financial statements?

The role of external auditors indeed extends beyond merely expressing an opinion on the truthfulness of financial statements. While their primary responsibility is to provide an independent and objective assessment of whether the financial statements present a true and fair view of the organization's financial position and performance, they also play a vital role in enhancing the credibility of financial reporting.

External auditors evaluate compliance with relevant accounting standards, laws, and regulations, assess the internal controls in place, and identify any material misstatements that may affect the integrity of the financial statements. Their work helps stakeholders, including investors, creditors, and regulators, to make informed decisions based on reliable financial information.

Additionally, external auditors may provide recommendations for improving financial processes and controls, thereby contributing to the overall effectiveness of the financial reporting framework. Thus, their responsibilities encompass a broader scope than just expressing an opinion, which is why the correct response reflects the complexity and importance of their role in the financial ecosystem.