What is one purpose of the conceptual framework in financial reporting?

One purpose of the conceptual framework in financial reporting is to assist in the preparation of financial statements. The conceptual framework provides a structured foundation that outlines the concepts and principles underlying financial reporting. It establishes the objectives of financial reporting, which include providing useful information to users for decision-making purposes. By creating a coherent system of guidance, the framework aids preparers in presenting financial information that is relevant and faithfully represents the financial position and performance of an entity. This is essential for ensuring consistency and comparability across different entities and time periods, thereby enhancing the reliability and clarity of financial statements.

The other options focus on specific areas that, while important in the broader context of accounting and finance, do not align with the primary objective of the conceptual framework. For example, developing tax regulations and preventing fraud are separate regulatory and ethical concerns, while enhancing audits relates more to the process after financial statements have been prepared rather than to their initial preparation.