Which of the following best describes why
publicly-traded corporations follow the
practice of having the outside auditor
appointed by the board of directors or
elected by the stockholders?
a. To comply with the regulations of the
Accounting Standards Council.
b. To emphasize auditor independence
from the management of the
corporation.
c. To encourage a policy of rotation of the
independent auditors.
d. To provide the corporate owners with an
opportunity to voice their opinion
concerning the quality of the auditing
firm selected by the director
publicly-traded corporations follow the
practice of having the outside auditor
appointed by the board of directors or
elected by the stockholders?
a. To comply with the regulations of the
Accounting Standards Council.
b. To emphasize auditor independence
from the management of the
corporation.
c. To encourage a policy of rotation of the
independent auditors.
d. To provide the corporate owners with an
opportunity to voice their opinion
concerning the quality of the auditing
firm selected by the director