I need help with one of the questions from the BPP revision kit.
Which of the following statements about external auditors is not correct? (Question 11.9)
A. External Auditors are appointed by shareholders of the company
B. The primary responsibilities of external auditors is to investigate financial irregularities and report them to shareholders
C. External auditors may rely on the work of internal Auditors if they first assess its worth
D. External Auditors are concerned with the financial records and the statements of the organization
The kit said the answer is B
Could someone explain why?
Its probably because it references it being a primary responsibility.The primary responsibility of anRevision external auditor is to ensure the financial statements represent a ‘true and fair’ view of the organisation’s position and performance.Financial irregularities that do not materially distort financial statements reported nor threaten going concern status of an organisation need not necessarily be reported to shareholders.
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