The third party who checks annual financial statements to ensure that they are prepared according to Generally Accepted Accounting Principles (GAAP)and verifies that the information reported is reliable is the
A)Australian Securities and Investments Commission (ASIC).
B)auditor.
C)Australian Securities Exchange.
D)Australian Accounting Standards Board.

Question

Quizplus · Accepted Answer

The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the auditor. The Australian Securities and Investments Commission (ASIC) oversees financial reporting and enforces compliance with accounting standards, but they are not the ones who perform the actual audit. The Australian Securities Exchange and the Australian Accounting Standards Board are also not responsible for performing audits of financial statements.

The Third Party Who Checks Annual Financial Statements to Ensure