Which of the Following Statements Is True of External Auditing

question 19

Multiple Choice

Which of the following statements is true of external auditing?

• A) Major focus areas are processes, including risks, controls, and effectiveness and efficiency of processes.
• B) External auditors perform both assurance and consulting services for public companies.
• C) Primary scope of services performed includes audits of financial statements.
• D) The primary client for a public company is upper management.

---

Definitions:

Bank Failures

Occur when a bank is unable to meet its obligations to depositors or creditors and is either closed or taken over by regulatory authorities.

Bank Management

The process of overseeing and running a bank's day-to-day operations and financial activities.

Barter

An exchange method where goods and services are directly traded for other goods and services without using a medium of exchange, like money.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage efficiency and competition.