Who evaluates the accounting system, including its ability to record transactions properly and its operational effectiveness, and also determines whether the financial reports prepared conform to the requirements of the applicable authoritative guidance?
A)management
B)general counsel
C)independent auditor
D)financial vice-president
E)controller

Question

Quizplus · Accepted Answer

An independent auditor is responsible for evaluating the accounting system, including its ability to record transactions properly and its operational effectiveness, and also determining whether the financial reports prepared conform to the requirements of the applicable authoritative guidance. Management, general counsel, financial vice-president, and controller may have oversight or involvement in these areas to some extent, but the independent auditor is the one tasked with providing an objective evaluation.

Who Evaluates the Accounting System, Including Its Ability to Record