Because company policies are reflected in the financial statements, it is important that auditors:
A) include the primary accounting policies in the permanent file.
B) carefully evaluate basic policy decisions.
C) periodically review information on accounting policies to determine if there has been a change.
D) all of the above

Question

Quizplus · Accepted Answer

All of the choices are important for auditors to ensure that company policies are accurately reflected in the financial statements. Including primary accounting policies in the permanent file allows for consistency and easy reference, evaluating basic policy decisions ensures that the policies are appropriate and effective, and periodically reviewing information on accounting policies helps auditors identify any changes that may affect the financial statements.

Because Company Policies Are Reflected in the Financial Statements, It