Which of the following is true of external auditing?
A)Major focus areas are processes,including risks,controls,and effectiveness and efficiency of processes.
B)Consulting is performed when agreed to by management.
C)Primary scope of services performed includes audits of financial statements.
D)Parties receiving assurance include the audit committee and upper management.

Question

Quizplus · Accepted Answer

External auditing primarily involves audits of financial statements, which are meant to provide assurance to stakeholders such as investors and creditors about the accuracy and completeness of an organization's financial reporting.

Answer: A, B, D are incorrect
 While external auditing may also involve assessments of processes and controls, this is not the primary focus area. Consulting services may be offered, but these are not performed at the discretion of management. Finally, parties receiving assurance may include stakeholders beyond the audit committee and upper management, such as regulatory agencies or the general public.

Which of the Following Is True of External Auditing