Question

is The role of independent auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP) in preparing the company's financial statements?

Answer 1

Answer:

This is the management's responsibility to properly apply GAAP. Auditors function as impartial mediators to help ensure that GAAP has actually been properly applied by management when preparing the financial statements for the company.

Explanation:

Auditors review (audit) financial statements to give a competent, independent opinion on whether the documents reasonably reflect the financial position of the organization, its operating results and its cash flows in accordance with GAAP.

Audits contribute to the financial statements credibility and increase the trust of all those who depend on the details.

Hence, auditors play a significant role in the financial markets.