BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Preparing financial statements in conformity with GAAP
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Certifying the accuracy of financial statements
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Expressing an opinion as to the fairness of financial statements
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Filing financial statements with the SEC
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Detailed explanation-1: -Answer choice: c) expressing an opinion as to the fairness of financial statements. Explanation: External auditors are responsible for expressing an opinion as to whether or not the financial statements are free of material misstatements.
Detailed explanation-2: -External auditors conduct independent assessments of organizations’ financial statements and disclosures. They confirm that financial statements do not contain errors or fraudulent activity. Companies hire external auditors to ensure financial statements and disclosures remain free of material misstatement.
Detailed explanation-3: -In the accounting industry, CPAs review financial documents and prepare tax returns for businesses and individuals. These professionals also provide auditing services, evaluating financial information for accuracy.
Detailed explanation-4: -The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes the auditor’s opinion.
Detailed explanation-5: -The auditor shall express an unmodified opinion when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.