An outside professional conducts an examination of company's accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?
Correct answer: B. Audit
- A. Checking
- B. Audit
- C. Stock-taking
- D. Accounting
Explanation
An audit is an independent examination of accounting records and financial statements to assess whether they follow accepted accounting principles and present reliable information. Checking and accounting are too broad to describe this formal examination.
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