External auditors perform independent audits. Indicate whether the st

QUESTION

External auditors perform independent audits.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: External auditors are public accountants who audit or review clients’ financial information to see whether it was prepared under generally accepted accounting principles. Such audits are called independent audits because they are done by firms that are independent of the company being audited and, therefore, are presumed to be unbiased.