For auditing to be an effective strategy for reducing the costs of attracting funds,the auditor must:
A) be independent and the accounting methods employed must be sufficiently well-defined.
B) have been auditing the company for at least the last five years.
C) be formally registered under the Registered Auditors Act 1998.
D) belong to one of the major ("Big 4") global accounting firms.
E) All of the given answers.

Question

Quizplus · Accepted Answer

Independence ensures that the auditor is objective and free from any influences that may compromise the integrity of the audit process. Well-defined accounting methods ensure that the auditor can accurately and consistently evaluate the financial statements. The other options listed do not necessarily contribute to the effectiveness of auditing as a strategy for reducing fundraising costs.

For Auditing to Be an Effective Strategy for Reducing the Costs