Which of the following statements is false?
A)The board of directors meets with the external auditors to discuss management's compliance with their financial reporting obligations.
B)The external auditors are selected by the Securities & Exchange Commission (SEC).
C)The Securities & Exchange Commission (SEC)requires publicly traded companies to have their financial statements audited by an independent auditor.
D)The external auditors assume some responsibility with respect to the fairness of the financial statements.

Question

Quizplus · Accepted Answer

The external auditors are not selected by the Securities & Exchange Commission (SEC); they are usually hired by the company's management or board of directors. The SEC requires publicly traded companies to have their financial statements audited by an independent auditor, but the company is typically responsible for selecting and hiring the auditor.

Which of the Following Statements Is False