Accounting · Auditing

Which one of the following statements about external auditors is NOT correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1External auditors are appointed by the shareholders of a company.
2The primary responsibility of external auditors is to investigate financial irregularities and report them to shareholders.✓
3External auditors may rely on the work of interna l auditors, but first they have to assess its worth.
4External auditors are concerned with the financial records and statements of the organisation.

Correct answer

The primary responsibility of external auditors is to investigate financial irregularities and report them to shareholders.

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