Which of the following statements is false?
A) Controllers are responsible for preparing financial statements, while external auditors are responsible for issuing opinions about financial statements.
B) A principal objective of an independent audit is to determine whether an entity's financial statements have been prepared in accordance with generally accepted accounting principles (GAAP).
C) Both internal and external auditors share the same audit objectives and degree of independence.
D) If a company's financial statements have been prepared in accordance with GAAP, those financial statements are presumed to fairly reflect company's financial affairs.
E) Independent examination of a set of financial statements increases third-party confidence in those financial statements.

Question

Quizplus · Accepted Answer

Statement C is false because internal and external auditors have different objectives and degrees of independence. Internal auditors are employed by the company they audit and focus on internal control and operational efficiency, while external auditors are independent of the company and focus on the accuracy of financial statements and compliance with GAAP.

Which of the Following Statements Is False