What is the primary role of external auditing in multinational corporations?

Question

Quizplus · Accepted Answer

The primary role of external auditing in multinational corporations is to assure that financial statement information is of high quality, accurate and reliable. This helps to provide confidence to stakeholders such as investors, regulators, and creditors that the financial statements reflect the true financial position of the corporation.

Option A is incorrect because the preparation of the annual report to corporate shareholders is the responsibility of internal accounting and management.

Option B is incorrect because designing a working system of internal accounting controls is the responsibility of internal auditors and management.

Option D is incorrect because the selection of independent members for the board of directors is the responsibility of the nominating committee of the board of directors.

What Is the Primary Role of External Auditing in Multinational