Which of the following best describes why an independent auditor is asked to express an opinion on the true and fair presentation of a financial report?
A)It is management's responsibility to seek available independent aid in the appraisal of the financial information shown in its financial report.
B)It is difficult to prepare a financial report that fairly presents a company's financial position and changes in cash flows without the expertise of an independent auditor.
C)It is a customary courtesy that all shareholders of a company receive an independent report on management's stewardship in managing the affairs of the business.
D)The opinion of an independent party is needed because a company may not be objective with respect to its own financial report.

Question

Quizplus · Accepted Answer

An independent party, such as an auditor, is needed to provide an objective opinion on the true and fair presentation of a financial report because a company may not report fairly on its financial position and performance due to potential conflicts of interest or bias.

Which of the Following Best Describes Why an Independent Auditor