Regulatory bodies generally require firms whose securities trade publicly (for example, common shares) to obtain an audit of their financial reports by _____.
A)the audit committee
B)the vice-president for finance
C)an internal auditor.
D)an independent external auditor.
E)the controller

Question

Quizplus · Accepted Answer

Regulatory bodies generally require firms to obtain an audit of their financial reports by an independent external auditor to ensure objectivity and impartiality in the audit process. The other options such as the audit committee, the vice-president for finance, or an internal auditor are not independent and may have conflicts of interest or lack the necessary expertise to perform a comprehensive audit. The controller may play a role in preparing the financial reports but is not responsible for auditing them.

Regulatory Bodies Generally Require Firms Whose Securities Trade Publicly (For