Which of the following is not one of the three steps taken by a corporation to assure the accuracy of its records?
Posted: Sat Aug 07, 2021 7:03 am
A) Implementing a system of controls over the company's records and assets.
B) Hiring an independent auditor to report on the fairness of the financial statements.
C) Hiring a financial analyst to ensure the actual results of operations are similar to planned
results.
D) Forming a committee made up of board of directors' members to oversee the integrity of the
corporation's system of controls and the hiring of the independent auditors.
Answer: C
Explanation: The three steps to ensure the accuracy of records include implementing a system of
controls, hiring external auditors, and having a board of directors with an audit committee. A
financial analyst does not provide services that help a corporation assure the accuracy of its
records.
B) Hiring an independent auditor to report on the fairness of the financial statements.
C) Hiring a financial analyst to ensure the actual results of operations are similar to planned
results.
D) Forming a committee made up of board of directors' members to oversee the integrity of the
corporation's system of controls and the hiring of the independent auditors.
Answer: C
Explanation: The three steps to ensure the accuracy of records include implementing a system of
controls, hiring external auditors, and having a board of directors with an audit committee. A
financial analyst does not provide services that help a corporation assure the accuracy of its
records.