Who does the public expect the auditor will recognize as the primary users of the audited financial statements?
A)Their clients.
B)The Public Company Accounting Oversight Board.
C)Members of management.
D)Third-party users.

Question

Quizplus · Accepted Answer

The public expects the auditor to recognize third-party users, such as investors, creditors, and other stakeholders, as the primary users of the audited financial statements. This is because these users rely on the financial statements to make informed decisions about the company. While the auditor's clients (choice A) may also use the financial statements, they are not the primary users. The Public Company Accounting Oversight Board (choice B) is a regulatory body that oversees accounting firms, but they are not users of the financial statements. Members of management (choice C) may also use the financial statements, but they are not the primary users that the public expects the auditor to recognize.

Who Does the Public Expect the Auditor Will Recognize as the Primary