All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by
A)an internal auditor.
B)an independent certified public accountant.
C)the firm's managerial accountant.
D)anyone in the accounting department.

Question

Quizplus · Accepted Answer

Publicly owned corporations are required by law to have their financial statements audited by independent certified public accountants. The purpose of this requirement is to ensure that the financial statements are free from material misstatements or errors. Internal auditors and managerial accountants may assist in the audit process, but the auditor's report must be prepared by an independent third party. Option D is also incorrect as anyone in the accounting department would not be an independent third party.

All Financial Statements Submitted to the SEC by Publicly Owned