Why is the CPA's role in performing audits important to our economic system?
Posted: Sat Aug 07, 2021 7:02 am
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.
Answer: D
Explanation: The CPA conducting the audit, and issuing the report, is independent of the
reporting entity and offers credibility for the users of financial statements to rely on these
statements.
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.
Answer: D
Explanation: The CPA conducting the audit, and issuing the report, is independent of the
reporting entity and offers credibility for the users of financial statements to rely on these
statements.