What is the main purpose of comparability as a qualitative characteristic?

The main purpose of comparability as a qualitative characteristic in financial accounting is indeed to allow comparisons over time with similar information from other entities. This is crucial because stakeholders, such as investors and analysts, rely on the ability to compare financial information to assess performance, trends, and financial health across different periods and entities.

When financial statements are prepared in a consistent manner, comparability enables users to identify changes in financial position and results of operations, which can inform decision-making. The characteristic of comparability facilitates an understanding of how an organization stacks up against its peers in the industry, therefore providing valuable insights for investment and management decisions.

The other options provided do not encapsulate the essence of comparability: auditing focuses on the reliability of financial information rather than its relative usefulness over time; the accuracy of financial statements pertains more to the principles of reliability and validity; and while simplifying financial reporting is a goal, it does not directly relate to the ability to compare financial information effectively across different time frames or entities.