Why Is the CPA's Role in Performing Audits Important to Our

question 65

Multiple Choice

Why is the CPA's role in performing audits important to our economic system?

• A)The auditors provide direct financial advice to potential investors.
• B)The auditors have the primary responsibility for the information contained in financial statements.
• C)The auditors issue reports on the accuracy of each financial transaction.
• D)The audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements.

---

Definitions:

Business-to-Government

Transactions conducted between companies and governmental bodies.

Consumer-to-Consumer

A type of commerce where private individuals trade goods, services, or information directly with each other, often facilitated by a third-party platform.

Higher-End Product

Goods that are considered of superior quality and higher price, often associated with luxury or premium branding.

Sales Process

A series of steps taken by a company to move a product or service from the initial contact with a potential customer to the final transaction.