Asked by J’Myaa Tameriaa on May 25, 2024
Verified
Which of the following statements is false?
A) The board of directors meets with the external auditors to discuss management's compliance with their financial reporting obligations.
B) The external auditors are selected by the Securities & Exchange Commission (SEC) .
C) The Securities & Exchange Commission (SEC) requires publicly traded companies to have their financial statements audited by an independent auditor.
D) The external auditors assume some responsibility with respect to the fairness of the financial statements.
Board of Directors
A group of elected individuals who represent shareholders and oversee the major decisions and policies of a corporation.
External Auditors
Independent accountants or audit firms that review a company's financial statements to ensure accuracy and compliance with accounting standards.
Securities & Exchange Commission
A government agency that oversees securities transactions, activities of financial professionals, and mutual fund trading to prevent fraud and intentional deception.
- Comprehend the regulatory structure that oversees financial reporting and auditing, highlighting the functions of the SEC, FASB, and PCAOB.
- Understand the duties of a firm's management, audit committee, and external auditors in the realms of financial reporting and auditing.
Verified Answer
Learning Objectives
- Comprehend the regulatory structure that oversees financial reporting and auditing, highlighting the functions of the SEC, FASB, and PCAOB.
- Understand the duties of a firm's management, audit committee, and external auditors in the realms of financial reporting and auditing.
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