Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements? a. The users of the financial statement do not have a background knowledge about accounting and tax matters b. There is an issue of agency problem between the management and the stockholders of the company c. Reliance on unaudited financial information may have adverse economic consequences d. The users of financial statements cannot directly access the company’s books and records
Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements? a. The users of the financial statement do not have a background knowledge about accounting and tax matters b. There is an issue of agency problem between the management and the stockholders of the company c. Reliance on unaudited financial information may have adverse economic consequences d. The users of financial statements cannot directly access the company’s books and records
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements?
a. The users of the financial statement do not have a background knowledge about accounting and tax matters
b. There is an issue of agency problem between the management and the stockholders of the company
c. Reliance on unaudited financial information may have adverse economic consequences
d. The users of financial statements cannot directly access the company’s books and records
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