Question

While reviewing the books at his firm, Chad Cooper noticed discrepancies between how the firm recorded revenues last year and how it elected to record revenues during the recent quarter of the current year. As a recent business graduate, Chad felt confident that the changes needed clarification. To get another opinion, Chad suggested to the company's controller that the firm solicit ______________.

Answer 1

Answer:

The correct answer is letter "D": the services of an independent auditor.

Explanation:

Every time an internal auditor feels there is inaccurate information on the company's books, requesting for an external audit of a Certified Public Accountant (CPA) is a valid option. Auditors must clarify any piece of information that seems ambiguous in a firm's general ledger. Otherwise, if mistakes or fraud are found, the auditor can be considered an accomplice of such activities.