In what way does the regulation of public accountants in Canada help to reduce information risk for investors?
A)By guaranteeing the accuracy of the financial statements.
B)By establishing performance and quality control standards that all public accounting firms must follow when conducting audits.
C)By acting as a source of financial compensation for investors when corporate failures occur.
D)By requiring auditors to quantify and set information risk to a uniformly acceptable level.

Question

Quizplus · Accepted Answer

The regulation of public accountants in Canada helps to reduce information risk for investors by establishing performance and quality control standards that all public accounting firms must follow when conducting audits. This ensures that the financial statements are reliable and accurate, which in turn reduces the chance of investors making decisions based on incorrect or incomplete information.

In What Way Does the Regulation of Public Accountants in Canada