The auditor's relationship with financial statement users is different from the relationship that most professionals have with the users of their services because:
A) higher standards of professionalism apply.
B) the users directly remunerate the auditor.
C) the primary beneficiaries of the audit do not engage the auditor.
D) of the confidentiality aspects involved.

Question

Quizplus · Accepted Answer

The primary beneficiaries of an audit are the shareholders or owners of the company being audited, but they do not engage or directly remunerate the auditor. Instead, the auditor is hired by the company's management, who have a responsibility to provide accurate and reliable financial statements for the benefit of shareholders and other users. This creates a unique relationship where the auditor must balance the interests of both management and users, while adhering to strict professional standards and maintaining confidentiality.

The Auditor's Relationship with Financial Statement Users Is Different from the Relationship