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) of the confidentiality aspects involved.
D) the primary beneficiaries of the audit do not engage the auditor.

Question

Quizplus · Accepted Answer

The primary beneficiaries of an audit are the users of financial statements, such as investors and creditors, who do not engage the auditor directly. This creates a different relationship dynamic than most professionals who have a direct relationship with their clients/customers. Additionally, while confidentiality is important in many professions, it is a particular concern in auditing due to the sensitive nature of financial information. While higher standards of professionalism may apply to auditors, this is not a key factor that distinguishes their relationship with financial statement users. And while users do not remunerate the auditor directly, the fees paid by the client company are ultimately borne by the users in the form of reduced returns or increased borrowing costs.

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