The work of the external independent auditor includes a letter that states that the financial information represents fairly the financial position of the company and that these statements were:
A)an accurate picture of the company's market position
B)based on the company's accounting information system (AIS)
C)constructed in conformity with generally accepted accounting principles
D)developed using management's choice of accounting enhancement techniques

Question

Quizplus · Accepted Answer

The external independent auditor's letter should state that the financial statements were constructed in conformity with generally accepted accounting principles (GAAP). This indicates that the statements were prepared according to a set of industry standard guidelines that ensure the accuracy and consistency of financial reporting. The other answer options are either incorrect (A and D) or too narrow (B) to fully capture the responsibilities of the external independent auditor.

The Work of the External Independent Auditor Includes a Letter