When Kenny applied for a loan to expand his sailboat business,the bank required that his financial statements be carefully examined by a CPA.The bank is requiring Kenny to have his financial statements
A) verified.
B) audited.
C) affirmed.
D) certified.
E) insured.

Question

Quizplus · Accepted Answer

The bank is requiring Kenny to have his financial statements "carefully examined," which implies a higher level of assurance than simply verifying or affirming the accuracy of the statements. While certification might also be an option, auditing involves a more thorough examination of financial statements by a CPA and is therefore a preferable choice. Insurance is not relevant to this situation.

When Kenny Applied for a Loan to Expand His Sailboat