Which of the Following Statements About External Company Auditors Is

question 16

Multiple Choice

Which of the following statements about external company auditors is NOT true?

• A) External company auditors provide assurance that the financial statements audited by them contain no mistakes.
• B) External company auditors cannot credibly audit statements they have prepared.
• C) External company auditors must be independent.
• D) Auditing arose because users demanded some assurance that managers' reports on their performance were reliable.

---

Definitions:

Suspension

A serious disciplinary sanction in which an attorney who has violated an ethical rule or a law is prohibited from practicing law in the state for a specified or an indefinite period of time.

Mildest Sanction

The least severe form of penalty or disciplinary action imposed in response to a wrongdoing or offense.

Attorney Violations

Actions or behaviors by a lawyer that breach professional codes, legal ethics, or laws.

Reprimand

A disciplinary sanction in which an attorney is rebuked for misbehavior. Although a reprimand is the mildest sanction for attorney misconduct, it is serious and may significantly damage the attorney’s reputation in the legal community.