Why don't auditors prepare financial statements, as well as audit them?
A) It would take away a job from the controller of the company
B) It would not eliminate errors in the financial statements
C) It would be a conflict of interest and violate ethical standards
D) It would not streamline the process and be effective

Question

Quizplus · Accepted Answer

Auditors are responsible for providing an independent opinion on the fairness and accuracy of the financial statements prepared by the company's management. It would be a conflict of interest if auditors also prepared these statements because they would then be auditing their own work, violating ethical standards, and potentially undermining the independence of their opinion.

Why Don't Auditors Prepare Financial Statements, as Well as Audit