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.

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Definitions:

Paid Dividend

Refers to the portion of a company's earnings that has been distributed to shareholders as dividends.

Account Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.