In addition to examining the company's financial statements and report whether they were presented fairly without any misstatement what else is required of the external auditors by the recent changes in financial reporting?
A)To report any financial misstatements or irregularities to the press
B)To review and test the effectiveness of the company's internal controls
C)To review and test the effectiveness of the company's board of directors
D)To review and test the effectiveness of the company's marketing department

Question

Quizplus · Accepted Answer

The recent changes in financial reporting require external auditors to also review and test the effectiveness of the company's internal controls, in addition to examining the financial statements and reporting any misstatements or irregularities. Option A is incorrect as auditors are not required to report to the press, but to the company's management and audit committee. Options C and D are unrelated to the auditor's responsibilities.

In Addition to Examining the Company's Financial Statements and Report