Stockholders of the Sasha Deal Company are concerned about irregularities in the firm's accounting system. One approach to identify problems in the records of the company would be to have a(n) ________ performed.
A) internal audit
B) independent audit
C) unofficial audit
D) GAAP analysis

Question

Quizplus · Accepted Answer

An independent audit involves an external auditor examining the company's financial records, procedures, and internal controls to ensure that they are accurate and comply with accounting standards. This type of audit is conducted by a third party, which helps to ensure objectivity and transparency in the audit process. Internal audits are conducted by employees of the company, which may not be as effective in identifying accounting irregularities as an independent audit. Unofficial audits are not recognized by accounting standards and may not be reliable. GAAP analysis is a process of examining accounting records to ensure that they comply with generally accepted accounting principles, but it is not the same as an independent audit.

Stockholders of the Sasha Deal Company Are Concerned About Irregularities