What is the main role of an external auditor of a company?
Correct answer: A. To express an opinion on financial statements
- A. To express an opinion on financial statements
- B. To manage the company’s daily operations
- C. To approve every shareholder transfer
- D. To set the company’s selling prices
Explanation
An external auditor independently examines the financial statements and reports whether they present a true and fair view under the applicable reporting framework. Managing operations and setting prices are functions of management, not the external auditor.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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