Question

In: Accounting

1.Which of these parties involved in preparing and auditing financial statements provides oversight of the reporting...

1.Which of these parties involved in preparing and auditing financial statements provides oversight of the reporting process and other parties?

a. Internal auditor.

b. External auditor.

c. Audit committee.

d. Management.

2.

Which of these is a safeguard to independence created by the audit firm as articulated in the AICPA's independence conceptual framework?

a. Disciplinary mechanisms to promote compliance with independence policies and procedures.

b. Policies and procedures to ensure accurate financial reporting.

c. Professional certifications.

d. Mandatory partner rotation after five years of service.

3.

Which of these describes management's need for reliable financial statements?

a. Buy or sell stock or bonds.

b. Review performance, make operational decisions, and report results to capital markets.

c. Evaluate loan decisions, considering interest rates, terms, and risk.

d. Assess the financial position of a company in litigation

Expert Solution

1	c. Audit committee.
	Explanation:
	Internal Auditor - Provides internal assurance on internal controls and reports
	Management - Maintains internal controls and prepares report
	External Auditor - Provides independent audit of internal controls and financial statements

2	a. Disciplinary mechanisms to promote compliance with independence policies and procedures.
	Explanation: safeguards implemented by the audit firm include the above safeguard

3	b. Review performance, make operational decisions, and report results to capital markets

ekkarill92 answered 2 years ago

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