Which One of the Following Best Describes the External Auditor's

question 148

Multiple Choice

Which one of the following best describes the external auditor's report?

• A)The external auditor's report is an opinion.
• B)The external auditor's report is a statement of fact.
• C)The external auditor's report must comply with both FASB and IASB standards.
• D)The firms that provide external audit reports are restricted to 20 partners,based on authoritative standards issued by the PCAOB.

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Definitions:

Government

An organized system that establishes and enforces rules and institutions to govern a community, region, or country.

Firms

Business entities that produce goods or provide services to consumers, aiming to maximize profits.

Pigouvian Taxes

Taxes imposed on any market activity that generates negative externalities (costs not reflected in the market price) to correct the market outcome.

External Costs

Costs that are not borne by the producers or users of a product or service, but by society or the environment.