Which of the Following Best Describes the Fundamental, Underlying Reason

question 16

Multiple Choice

Which of the following best describes the fundamental, underlying reason for why there is demand for an independent auditor to report on financial statements?

• A)A management fraud may exist and it is more likely to be detected by auditors if they are independent.
• B)Different interests may exist between the company preparing the statements and the parties using the statements.
• C)A misstatement of account balances may exist and it is the independent auditor's responsibility to ensure that financial statements are not misstated.
• D)A poorly designed internal control system may be in place.

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Definitions:

Love and Affection

Deep feelings of fondness and caring towards someone, often characterized by emotional attachment and expressions of warmth.

Imprinting

A form of learning occurring at a particular age or a life stage that is rapid and apparently independent of the consequences of behavior.

Critical Period

In this context, a period during which an embryo is particularly vulnerable to a certain teratogen.

Releasing Stimulus

is a specific external cue or signal that triggers a fixed action pattern or instinctive behavior in an animal.