The Primary Function of External Auditors Is To

question 41

Multiple Choice

The primary function of external auditors is to:

• A) Express an opinion on the fairness and reliability of the company's financial statements.
• B) Determine the accuracy of the management reports.
• C) Evaluate the efficiency of operations and the degree of compliance with management's policies in all departments within a large organization.
• D) Determine that financial statements and all special reports to management are prepared in conformity with generally accepted accounting principles.

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Definitions:

UCC

The Uniform Commercial Code, a set of laws that govern commercial transactions in the United States, intended to standardize regulations across the states.

Wholesaler

A type of intermediary in the distribution channel that purchases goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.

Conforming Goods

Merchandise or products that meet the specifications and standards outlined in a purchase contract.

Acceptance

A promise or act on the part of an offeree indicating a willingness to be bound by the terms and conditions contained in an offer. Also, the acknowledgment of the drawee that binds the drawee to the terms of a draft.