There Are Four Conditions That Give Rise to the Need

Multiple Choice

There are four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the:

A) users of the statements may not fully understand the consequences of their actions.
B) auditor must anticipate all possible consequences of the report issued.
C) impact of using different accounting methods may not be fully understood by the users of the statements.
D) financial statements are used for important decisions.
E) financial statements were prepared in accordance with GAAS.