External auditors are hired by which one of the following groups?
A)Management
B)Internal auditors
C)Shareholders
D)Tax authorities

Question

Quizplus · Accepted Answer

External auditors are hired by shareholders to provide an independent assessment of the financial statements of a company. Management may hire external auditors for various reasons such as regulatory compliance or risk management, but ultimately it is the shareholders who have the authority to hire and dismiss external auditors. Internal auditors are employees of the company and do not hire external auditors. Tax authorities may review a company's financial statements, but they do not hire external auditors.

External Auditors Are Hired by Which One of the Following