Which of the following is true of an auditor of a corporation?
A) The auditor must be an independent certified public accountant.
B) The auditor cannot use information about the corporation from third parties.
C) The auditor cannot inspect the corporation's real property unless he is closely associated with the company.
D) The auditor must provide a qualified opinion wherever possible since it helps the company in business.

Question

Quizplus · Accepted Answer

According to generally accepted auditing standards, an auditor must be independent, which often means being a certified public accountant.

Choice B is incorrect because auditors are allowed to use information from third parties.

Choice C is incorrect because an auditor has the right to inspect all assets of the company, including real property.

Choice D is incorrect because the auditor must provide an opinion based on their professional judgment of the financial statements and cannot intentionally provide a qualified opinion to benefit the company.

Which of the Following Is True of an Auditor of a Corporation