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Basic Question 7 of 18

Companies have their financial statements audited by an independent certified public accountant because ______

I. financial statements could be falsified by preparers for personal gain.
II. they sell shares of stock to the public.
III. it is a requirement to apply for sizeable loans.
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User Contributed Comments 1

User Comment
Antoinepo (I) seems to prevail , even more in the new IFRS where financial information quality is very important
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe the importance of regulatory filings, financial statement notes and supplementary information, management's commentary, and audit reports

describe information sources that analysts use in financial statement analysis besides annual and interim financial reports

CFA® 2025 Level I Curriculum, Volume 2, Module 1.