The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the:
A)NYSE Enforcement Board.
B)Accounting Standards Board.
C)Securities and Exchange Commission (SEC).
D)auditor.

Question

Quizplus · Accepted Answer

The auditor is responsible for checking annual financial statements to ensure they are prepared according to GAAP and verifying the information reported is reliable. The NYSE Enforcement Board and Accounting Standards Board are not involved in this process, and while the SEC may review financial statements, they do not provide the same level of verification as an independent auditor.

The Third Party Who Checks Annual Financial Statements to Ensure