The independent auditor's primary responsibility is to______________?
Correct answer: D. the shareholders
- A. the directors
- B. the company's creditors (payables)
- C. the company's bank
- D. the shareholders
Explanation
The auditor is appointed to serve the shareholders or members and reports the audit opinion to them. Although creditors and banks may use the accounts, they are not the auditor’s primary responsibility.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
How long is the auditor's term of office?
Which of the following is correct in relation to materiality?
Which one of the following is NOT considered to be part of planning?
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
Which one of the following is NOT a duty of the auditor?
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?