The Function of Auditors as Gatekeepers Is To

question 10

Multiple Choice

The function of auditors as gatekeepers is to:

• A)verify a company's financial statements so that investors' decisions are free from fraud and deception.
• B)evaluate a company's financial prospects or creditworthiness, so that banks and investors can make informed decisions.
• C)ensure that decisions and transactions conform to the law.
• D)function as intermediaries between a company's stockholders and its executives.

---

Definitions:

Critical Value

A point on the distribution of a statistical test that marks the threshold for rejecting the null hypothesis.

P-value

The probability of observing results at least as extreme as those in the data, assuming the null hypothesis is true.

Level of Significance

The threshold below which a null hypothesis is rejected in a statistical test, usually expressed as a probability.

Heating Bills

Monthly or seasonal charges incurred for consuming energy to heat a residential or commercial space.