Why Is the CPA's Role in Performing Audits Important to Our

question 65

Multiple Choice

Why is the CPA's role in performing audits important to our economic system?

• A)The auditors provide direct financial advice to potential investors.
• B)The auditors have the primary responsibility for the information contained in financial statements.
• C)The auditors issue reports on the accuracy of each financial transaction.
• D)The audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements.

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Definitions:

State University

A publicly funded university maintained by a state government that typically offers lower tuition costs to in-state residents.

Exempt From Income

Describes income that is not subject to income tax under current tax laws.

Compensation

Payment or benefit given to an individual, such as salary, wages, or bonuses, for services rendered.

Injuries Or Sickness

This refers to physical or mental conditions that may qualify an individual for certain tax benefits or deductions.