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What is the primary duty of an auditor in relation to a company's financial statements?
- a)To endorse the company's financial statements without any modifications.
- b)To suggest improvements in the company's operational efficiency.
- c)To express an opinion on the company's internal controls.
- d)To report to the members of the company on the accounts and financial statements examined.
Correct answer is option 'D'. Can you explain this answer?
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What is the primary duty of an auditor in relation to a company's fina...
The primary duty of an auditor in relation to a company's financial statements is to report to the members of the company on the accounts and financial statements examined by them. This report includes expressing an opinion on whether the financial statements provide a true and fair view of the company's financial position, profit or loss, and other relevant matters. The auditor's report is a crucial communication to shareholders and stakeholders regarding the financial health of the company.
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What is the primary duty of an auditor in relation to a company's fina...
Primary Duty of an Auditor in Relation to a Company's Financial Statements
Auditors play a crucial role in ensuring the accuracy and reliability of a company's financial statements. The primary duty of an auditor in relation to a company's financial statements is:
Reporting to the Members of the Company
- Auditors are responsible for examining the company's accounts and financial statements to ensure they are free from material misstatements and errors.
- After conducting the audit, the auditor must report their findings to the members of the company, typically the shareholders or owners.
- The auditor's report includes an opinion on whether the financial statements present a true and fair view of the company's financial position and performance.
In conclusion, the primary duty of an auditor in relation to a company's financial statements is to provide an independent assessment of the financial information presented by the company and report their findings to the members of the company. This helps to enhance transparency, accountability, and confidence in the financial reporting process.
Auditors play a crucial role in ensuring the accuracy and reliability of a company's financial statements. The primary duty of an auditor in relation to a company's financial statements is:
Reporting to the Members of the Company
- Auditors are responsible for examining the company's accounts and financial statements to ensure they are free from material misstatements and errors.
- After conducting the audit, the auditor must report their findings to the members of the company, typically the shareholders or owners.
- The auditor's report includes an opinion on whether the financial statements present a true and fair view of the company's financial position and performance.
In conclusion, the primary duty of an auditor in relation to a company's financial statements is to provide an independent assessment of the financial information presented by the company and report their findings to the members of the company. This helps to enhance transparency, accountability, and confidence in the financial reporting process.
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What is the primary duty of an auditor in relation to a company's financial statements?a)To endorse the company's financial statements without any modifications.b)To suggest improvements in the company's operational efficiency.c)To express an opinion on the company's internal controls.d)To report to the members of the company on the accounts and financial statements examined.Correct answer is option 'D'. Can you explain this answer?
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What is the primary duty of an auditor in relation to a company's financial statements?a)To endorse the company's financial statements without any modifications.b)To suggest improvements in the company's operational efficiency.c)To express an opinion on the company's internal controls.d)To report to the members of the company on the accounts and financial statements examined.Correct answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary duty of an auditor in relation to a company's financial statements?a)To endorse the company's financial statements without any modifications.b)To suggest improvements in the company's operational efficiency.c)To express an opinion on the company's internal controls.d)To report to the members of the company on the accounts and financial statements examined.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary duty of an auditor in relation to a company's financial statements?a)To endorse the company's financial statements without any modifications.b)To suggest improvements in the company's operational efficiency.c)To express an opinion on the company's internal controls.d)To report to the members of the company on the accounts and financial statements examined.Correct answer is option 'D'. Can you explain this answer?.
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