Economics · Auditing
Out of the following statements regarding financial audit, which one is false?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The need for a financial audit arises as the control of the company is vested in the hands of the management.
- 2Trade creditors do not rely on a financial audit.✓
- 3Banks will place greater reliance on financial statements if they have been audited.
- 4The opinion of the auditor assures the owners about the reliability of the financial statements.
Correct answer
Trade creditors do not rely on a financial audit.
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