Which of the Following Relates to What an Auditor Does

question 19

Multiple Choice

Which of the following relates to what an auditor does?

• A) Relies on all information provided by the client.
• B) Performs a service and announces its opinion.
• C) Prepares the financial statements for a company.
• D) Advocates for the client.

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Definitions:

Return

The income generated from an investment or the gain from an asset relative to the investment's or asset's cost.

Risk

The potential for losing something of value or the chance of an action leading to an undesirable outcome.

Financial Statements

Compiled reports that show a company's financial health, including balance sheet, income statement, and cash flow statement, among others.

Balance Sheet

A financial statement that gives a snapshot of a company’s financial condition at a specific time, detailing assets, liabilities, and shareholders' equity.