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November 3, 2024

Ensuring Integrity: The Role of External Auditors in Financial Reporting

Ensuring Integrity: The Role of External Auditors in Financial Reporting

Simplified approaches for preparing pro forma statements assume that the firm’s past financial condition is an accurate indicator of the future. There are several examples from the past where organizations were not accurately reporting their financial information. Discuss the relationship between the external auditor and the organization. What steps have been taken to ensure that the relationship is truly neutral and no bias is shown by the external auditing firm?

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