What Is the Primary Role and Responsibility of Independent External

question 13

Multiple Choice

What is the primary role and responsibility of independent external auditors?

• A)to prepare a company's annual financial statements and notes.
• B)to perform an audit and provide an opinion on the financial statements of a company.
• C)to provide business consulting advice to audit clients.
• D)to obtain an understanding of a client's internal control system and prepare a report for management about control weaknesses.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the percentage of an additional dollar of income that is paid in tax.

Taxable Income

The amount of an individual's or company's income that is subject to taxes, after all deductions and exemptions are applied.

Average Tax Rate

The percentage of total income paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.

Tax Schedule

A chart or list that outlines the rates of taxation for different levels of income or types of taxpayers.