Which of the Following Best Describes the Primary Role and Responsibility

question 91

Multiple Choice

Which of the following best describes the primary role and responsibility of the independent external auditor?

• A) Produce a company's annual financial statements and notes.
• B) Express an opinion on the fairness of a company's annual financial statements and footnotes.
• C) Provide business consulting advice to audit clients.
• D) Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them partial ownership and possibly a right to vote on corporate matters.

Dissolution

The process of officially ending or dissolving an entity, such as a corporation or partnership, according to legal procedures.

Paralegal

A trained legal professional who assists attorneys in researching, preparing, and managing legal documents and cases but is not licensed to practice law.

Corporate Securities

Financial instruments issued by corporations, including stocks and bonds, representing ownership or debt obligations.