Q:

Which of the following best describes the reason why an independent auditor is often retained to report on financial statements?

Ibrahimhamm
Save to bookmark
|
2022-06-28
|
  143 
0

Which of the following best describes the reason why an independent auditor is often retained to report on financial statements?

  1. Management fraud may exist, and it is more likely to be detected by independent auditors than by internal auditors.
  2. Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance is needed to enhance the credibility of the statements.
  3. A misstatement of account balances may exist, and all misstatements are generally corrected as a result of the independent auditor\'s work.
  4. An entity may have a poorly designed internal control system
Accounting, textbook solutions, MCQ Questions, Accounting textbook-solutions, Accounting MCQ-questions,
login and add your own answer to this question

All Answers

Ibrahimhamm
2022-06-28
need an explanation for this answer? contact us directly to get an explanation for this answer

B. Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance is needed to enhance the credibility of the statements.

need an explanation for this answer? contact us directly to get an explanation for this answer

total answers (1)

Similar questions

need a help?

find thousands of online teachers now