Which of the Following Statements Best Describes the Role of the Auditor

question 1

Multiple Choice

Which of the following statements best describes the role of the auditor?

• A)Auditors help management prepare the financial statements for the corporation.
• B)Auditors prepare the financial statements of the corporation.
• C)Auditors advise the directors on whether management has done a good job in managing the corporation's business
• D)Auditors provide an independent assessment of the corporation's financial statements prepared by management usually for the benefit of shareholders.
• E)Auditors advise the corporation on how to set up its bookkeeping system.

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Definitions:

Equity

The amount of a home that an owner actually owns.

Loan Balance

The amount of money that remains to be paid on a loan, excluding interest or fees that may accumulate.

Sales Tax

A percentage paid to the government of sales on products or services.

Square Foot

A unit of area measurement equal to a square measuring one foot on each side.