The third party who checks annual financial statements to ensure that they are prepared according to Generally Accepted Accounting Principles (GAAP)and verifies that the information reported is reliable is the:
A)TSX Enforcement Board.
B)Accounting Standards Board.
C)provincial securities commission.
D)auditor.
E)GAAP commission.

Question

Quizplus · Accepted Answer

The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information is reliable is the auditor. The other options listed do not perform this specific role. The TSX Enforcement Board enforces the rules and regulations of the Toronto Stock Exchange, the Accounting Standards Board sets accounting standards, the provincial securities commission regulates securities markets within a specific province, and there is no such thing as a GAAP commission.

The Third Party Who Checks Annual Financial Statements to Ensure