Which of the following best describes the main reason independent auditors report on management's financial statements?
A)Management fraud may exist and it is likely to be detected by independent auditors.
B)The management that prepares the statements and the persons who use the statements may have conflicting interests.
C)Misstated account balances may be corrected as the result of the independent audit work.
D)The management that prepares the statements may have a poorly designed system of internal control.

Question

Quizplus · Accepted Answer

Independent auditors provide an objective assessment of financial statements to ensure their accuracy and reliability, addressing potential conflicts of interest between management (who prepare the statements) and the users of the statements (such as investors, creditors, and regulators). This helps to maintain trust and transparency in financial reporting.

Which of the Following Best Describes the Main Reason Independent