Which of the Following Is True of an Auditor of a Corporation

question 65

Multiple Choice

Which of the following is true of an auditor of a corporation?

• A) The auditor must be an independent certified public accountant.
• B) The auditor cannot use information about the corporation from third parties.
• C) The auditor cannot inspect the corporation's real property unless he is closely associated with the company.
• D) The auditor must provide a qualified opinion wherever possible since it helps the company in business.

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Definitions:

Sole Proprietorship

A business ownership structure where a single individual owns the company and is responsible for its debts and liabilities.

Capital Maintenance

An accounting concept aimed at preserving the initial capital of the company, adjusting for inflation or financial performance.

Transactional Methods

Approaches used for evaluating and proceeding with individual transactions, often in the context of tax or foreign exchange.

Periodic Income

This refers to the income received or earned regularly over a specific period, such as monthly or quarterly, typically associated with investments or employment.