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.

Evaluate internal control procedures over cash and identify strengths and weaknesses.

Calculate the beginning balance of a cash account given cash payments and collections data.

Perform bank reconciliations to adjust the cash account balance.

Prepare and understand the significance of petty cash funds in business operations.

---

Definitions:

Research Psychology

The branch of psychology that focuses on conducting research to understand human behavior and mental processes.

Public Understanding

The level of knowledge and awareness that the general population has about a specific topic or issue.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental illness, emotional disturbances, and dysfunctional behavior.

Psychotherapist

A trained professional who treats mental health issues and emotional difficulties through psychological techniques and dialogue.