Financial statement audits of state and local governments are performed by:
A) internal auditors.
B) external auditors.
C) governmental auditors.
D) GAO auditors.
E) IRS auditors.

Question

Quizplus · Accepted Answer

Financial statement audits of state and local governments are performed by external auditors, which can be either certified public accounting firms or government auditors from the state or local government's audit division. These auditors are independent of the entity being audited and provide an objective opinion on the fairness and accuracy of the government's financial statements. Internal auditors, on the other hand, are employees of the government entity and provide operational and compliance audits rather than financial statement audits. GAO auditors are also external auditors, but they typically audit federal agencies rather than state and local governments. IRS auditors focus on tax compliance rather than financial statement audits.

Financial Statement Audits of State and Local Governments Are Performed