Which of the Following Is NOT Characteristic of an External

question 27

Multiple Choice

Which of the following is NOT characteristic of an external audit?

• A) performed by CPAs
• B) primarily used when management suspects embezzlement
• C) performed by an independent organization
• D) verifies that generally accepted accounting principles have been followed
• E) verifies the accuracy and fairness of financial statements

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Definitions:

Book Value

The value of a company's assets minus its liabilities, as recorded on the balance sheet.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.