Which statement best describes the role of an external auditor?
Correct answer: B. To provide independent assurance on financial statements
- A. To manage the company's daily operations
- B. To provide independent assurance on financial statements
- C. To set the company's long-term strategy
- D. To approve every employee appointment
Explanation
An external auditor independently examines financial information and expresses an opinion on whether it is fairly presented under the applicable framework. Operational management and strategy remain responsibilities of company management and the board.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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