Which of the Following Best Describes Why an Independent Auditor

question 17

Multiple Choice

Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements?

• A)It is difficult to prepare financial statements that fairly present a company's financial position and changes in cash flows without the expertise of an independent auditor.
• B)It is management's responsibility to seek available independent aid in the appraisal of the financial information shown in its financial statements.
• C)The opinion of an independent party is needed because a company is not likely to be considered objective with respect to its own financial statements.
• D)It is a customary courtesy that all stockholders of a company receive an independent report on management's stewardship in managing the affairs of the business.

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Definitions:

Information and Communications

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

Rules

Directives or instructions that guide behavior or operations in systems, organizations, or software.

Fiber-Optic

Refers to the technology and medium associated with the transmission of information as light pulses along a glass or plastic fiber.

Electromagnetic Interference

Disturbance generated by external sources that affects an electrical circuit by electromagnetic induction, electrostatic coupling, or conduction, potentially causing performance degradations or malfunctions in electronic devices.