While reviewing the books at his firm, Chad Cooper noticed discrepancies between how the firm recorded revenues last year and how it elected to record revenues during the recent quarter of the current year. As a recent business graduate, Chad felt confident that the changes needed clarification. To get another opinion, Chad suggested to the company's controller that the firm solicit _______________.
A) the assistance of the Government Accounting Standards Board.
B) the services of a certified internal auditor.
C) the services of a senior executive at the IRS.
D) the services of an independent auditor.

Question

Quizplus · Accepted Answer

The best choice in this situation is to solicit the services of an independent auditor. An independent auditor can provide an objective evaluation of the company's financial statements to identify any discrepancies and ensure that the company's financial reporting is accurate and compliant with financial reporting standards. The Government Accounting Standards Board and senior executives at the IRS are not appropriate choices in this situation, as they are not involved in auditing or providing consulting services related to financial reporting. Though a certified internal auditor could be helpful, an independent auditor is a better choice, as they have greater independence and objectivity.

While Reviewing the Books at His Firm, Chad Cooper Noticed