In order for accounting firms to perform external audits that meet the needs of stakeholders, what must the firms do?
A) remain independent and objective
B) serve as consultants to the firms they audit
C) work closely with the firm's comptroller throughout the year
D) become actively involved in the firm's management

Question

Quizplus · Accepted Answer

Accounting firms must remain independent and objective in order to perform external audits that meet the needs of stakeholders. This is essential to maintain the integrity and credibility of the audit process. Serving as consultants to the firms they audit (B) or becoming actively involved in the firm's management (D) can compromise this independence and objectivity. While working closely with the firm's comptroller throughout the year (C) can be helpful in understanding the company's operations and financial reporting, it is not essential to performing an effective audit.

In Order for Accounting Firms to Perform External Audits That