Which of the Following Best Describes the Reason Why Independent

question 14

Multiple Choice

Which of the following best describes the reason why independent auditors report on financial statements?

• A) A management fraud may exist and it is more likely to be detected by independent auditors.
• B) Different interests may exist between the company preparing the statements and the persons using the statements.
• C) A misstatement of account balances may exist and is generally corrected as the result of the independent auditors' work.
• D) Poorly designed internal control may be in existence.

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Definitions:

Situational Factors

External influences that affect an individual's behavior, performance, or responses in various contexts.

Learning

The acquisition of knowledge or skills through experience, study, or being taught, which leads to a permanent change in behavior.

Competencies

A combination of skills, knowledge, and abilities that enable a person to perform tasks successfully.

Interpreting the World

The cognitive process of making sense of the environment and events around us, often influenced by personal experiences, culture, and cognitive biases.