The primary reason for an audit by an independent, external audit firm is to
a. Satisfy governmental regulatory requirements
b. Guarantee that there are no misstatements in the financial statements and ensure that any fraud will be discovered
c. Relieve management of responsibility for the financial statements
d. Provide increased assurance to users as to the fairness of the financial statements
Ans: d. Provide increased assurance to users as to the fairness of the financial statements
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Market stakeholders include nongovernmental organizations and business support groups.
Indicate whether the statement is true or false.
Which of the following is NOT true for a limited partnership?
A) Limited partners may sell their interest in the company. B) It has limited liability for its owners. C) One general partner must exist who has unlimited liability. D) Only the name of general partners can appear in the name of the firm.