Question

Choose the correct statement about audits of corporations: Public corporations (those whose stock are traded on...

Choose the correct statement about audits of corporations:

Public corporations (those whose stock are traded on exchanges) are subject to annual audit as to their compliance with GAAP.

It is the employees of the firm being audited who perform the annual audit of the financial statements of that firm.

Outside auditors are paid by the government for auditing the financial statements of corporations.

Revenue Canada performs audits of corporations' financial statements

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Answer #1

Answers:-

(1) Public corporations (those whose stock are traded on exchanges) are subject to annual audit as to their compliance with GAAP. - Answer - it is correct statement.

The Financial Accounting Standards Board (FASB) is the organization that develops the accounting standards and principles and Corporations whose stock is traded in exchange must also comply with the reporting with GAAP.

(2) It is the employees of the firm being audited who perform the annual audit of the financial statements of that firm.- Answer - it is incorrect Statement.

(3) Outside auditors are paid by the government for auditing the financial statements of corporations.:-

Answer - it is incorrect Statement.

(4) Revenue Canada performs audits of corporations' financial statements

Answer - it is incorrect Statment.

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