Which of the following is not characteristic of an external audit?
A)performed by CPAs
B)primarily used when management suspects embezzlement
C)performed by an independent organization
D)verifies that generally accepted accounting principles have been followed
E)verifies the accuracy and fairness of financial statements

Question

Quizplus · Accepted Answer

An external audit is not primarily used when management suspects embezzlement. While an external audit may uncover instances of fraud or embezzlement, its primary purpose is to verify the accuracy and fairness of financial statements and ensure that generally accepted accounting principles have been followed. An external audit is performed by CPAs and an independent organization.

Which of the Following Is Not Characteristic of an External