External auditors are referred to as "external" because:
A)they report to users outside of the audited entity.
B)they are paid by parties outside of the audited entity.
C)they are not employees of the entity being audited.
D)their offices are not at the entity's place of business.

Question

Quizplus · Accepted Answer

External auditors are not employees of the entity being audited, hence they are referred to as "external." Choices A, B, and D may also be true in some cases, but they are not the primary reason why external auditors are called as such.

External Auditors Are Referred to as "External" Because