Why Don't Auditors Prepare Financial Statements, as Well as Audit

question 64

Multiple Choice

Why don't auditors prepare financial statements, as well as audit them?

• A) It would take away a job from the controller of the company.
• B) It would not eliminate errors in the financial statements.
• C) It would be a conflict of interest and violates ethical standards.
• D) It would streamline the process and be effective.

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Definitions:

WAN

An acronym for Wide Area Network, it's a telecommunications network that extends over a large geographic area for the purpose of computer networking.

MAN

Metropolitan Area Network, a network that spans a city or campus, providing connectivity to a large number of computers in a large geographical area.

Fiber-optic Cable

A type of cable made of glass fibers that transmits data at high speeds using light signals.

Twisted-pair Cable

A type of cabling that consists of pairs of wires twisted together, used for transmitting voice and data communications.