Which of the Following Best Describes Why Publicly-Traded Corporations Follow

Multiple Choice

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

A) To promote an adversarial relationship between the auditor and the corporation's management.
B) To enhance auditor independence from the management of the corporation.
C) To encourage a policy of rotation of the independent auditors.
D) To give management more leverage over the auditor's decisions.