Which one of the following is not among the conditions that give rise to a demand by external users for independent audits of financial statements?
A) remoteness of users
B) complexity of subject matter
C) the securities acts, administered by the SEC
D) potential conflict of interest between users and preparers of the statements
E) consequence for making decisions

Question

Quizplus · Accepted Answer

The securities acts, administered by the SEC, do not directly give rise to a demand for independent audits of financial statements. Instead, they provide a regulatory framework that may require such audits for compliance purposes, but the demand for audits primarily stems from factors like remoteness of users, complexity of subject matter, potential conflicts of interest, and the consequences of making decisions based on the financial statements.

Which One of the Following Is Not Among the Conditions