Which of the Following Best Describes the Main Reason That

question 28

Multiple Choice

Which of the following best describes the main reason that independent auditors report on a company's financial statements?

• A)Management fraud may exist within the company and it is likely that the independent auditors will detect it.
• B)Users of financial statements need confidence in the numbers they base their decisions on.
• C)Misstated account balances may be corrected as the result of the independent audit work.
• D)The accounting system from which the financial statements are derived may have a poorly designed system of internal control.

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Definitions:

Positive Instance

An example that fits or supports a particular rule or classification, used in the process of hypothesis testing.

Negative Instance

A term or example that does not fit a specific rule or pattern under investigation, often used in the study of logic and cognition.

Dog Concept

An understanding or cognitive representation of dogs, encompassing their attributes, behaviors, and roles in human society.

Displacement

The quality of language that permits one to communicate information about objects and events in another time and place.