What is the primary reason a government entity would want to look at a company's financial statements?

D - The Government requires Financials Statements to determine if tax declared was indeed correct and in some countries it has become compulsory to submit your F.S. along with your tax return.

i think it should be d option, coz govt only determines tax liability and its not govt job to find out evasions rather its more of a investigation oriented thing

b. To determine if the company is committing tax fraud or evasion 

 d. To determine tax liability

 a. To look whether ethical standards meeting expectations

Option b. To determine if the company is committing tax fraud or evasion and also to see that financial statements show the correct state of affairs of the assessee so that the interests of the investors and public are safe-guarded.

In our country - the first and the only one correct answer - D. But I would add another version - to check the going concern principle is the most important one...

b & d are correct ............

 b. To determine if the company is committing tax fraud or evasion

d. To determine tax liability