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:

Independent Events

Two or more events whose outcomes do not affect each other's probabilities of occurring.

Positive Difference

The result of subtracting a smaller number from a larger number, ensuring a non-negative result.

Fair 6-Sided Dice

A classic dice with six faces, each showing a number from one to six, where each number has an equal likelihood of appearing on a roll.

Record

An account or report documenting the occurrence or performance of something, often kept in writing or another permanent form.