Question

Public companies under the jurisdiction of the Securities and Exchange Commission are required by law to hire a certified public accounting firm (independent auditor) to assess whether their published financial statements are in compliance with Generally Accepted Accounting Principles (GAAP). This statement is:______. A. True B. False

Answer 1

Answer:

A. True

Explanation:

At the time of publishing the financial statements of the public companies under the jurisdiction of the Securities and Exchange Commission (SEC) is compulsory to hire the independent auditor or we can say Chartered Accountant (CA) so that he or she can assess the financial statement prepared by the public company whether it follows the  Generally Accepted Accounting Principles (GAAP) or not.

And, according to that the independent auditor given his or her qualified or unqualified opinion