An Important Purpose of External Audits Is to

question 2

Multiple Choice

An important purpose of external audits is to

• A)assess what a company has done for itself.
• B)evaluate production efficiency.
• C)evaluate sales effectiveness.
• D)investigate possible targets for mergers or acquisitions.
• E)assess what a company has done for its customers.

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Definitions:

Articles Amendment

A modification or change made to the articles of incorporation or other formal documents governing a corporation.

Pre-merger Market Values

The valuation of companies involved in a merger as determined before the merger takes place, often used to assess the financial health and assets of the entities.

Liabilities Acquisition

The process of obtaining new obligations or debts, often through purchases or other financial transactions.

Fair Consideration

In the context of contracts, it refers to something of value that is exchanged between parties, which is considered reasonable and equitable.