Foreseeable third parties are best described as
A)Management of the entity.
B)Those third parties that have a direct relationship with auditors through previous contract related to the audit engagement.
C)Those third parties who will rely on the audit and are specifically known by auditors.
D)Those third parties whose decisions normally rely on audited financial statements and opinions on those financial statements.

Question

Quizplus · Accepted Answer

Foreseeable third parties are those whose decisions typically rely on audited financial statements and the opinions expressed on those statements, even if they are not specifically known to the auditors.

Foreseeable Third Parties Are Best Described as