As the Bernard Madoff's Ponzi Scheme makes clear,when making an investment decision,it is important not only to review the firm's ________,but also to consider ________ who prepare the statement in the first place.
A) balance sheet; the reliability and reputation of the auditors
B) Financial Statements; the reliability and reputation of the government offices
C) Financial Statements; the reliability and reputation of the auditors
D) Financial Statements; the reliability and reputation of the bookkeepers

Question

Quizplus · Accepted Answer

The question is asking about factors to consider when making an investment decision. The correct answer is C because reviewing the financial statements is important, but it is equally important to consider the reliability and reputation of the auditors who prepare the statements. This is because the auditors are responsible for ensuring the accuracy of the financial statements and detecting any errors or fraud. In the case of the Bernard Madoff Ponzi Scheme, the auditors failed to do their job properly and as a result, investors lost billions of dollars. Choices A, B, and D are incorrect because they do not include the importance of considering the reliability and reputation of the auditors.

As the Bernard Madoff's Ponzi Scheme Makes Clear,when Making an Investment