Question

Bankers who are processing loan applications from companies seeking large loans will probably ask for financial statements audited by an independent CPA because ____(A) Financial statements are too complex for the bankers to analyze themselves(B) they are too far away from the company headquarters to perform accounting(C) The consequences of making a bad loan are very undesirable (D) They generally see a potential conflict of interest between company managers who want to get loans and the banks needs for reliable financial statements

Answer 1

(D) They generally see a potential conflict of interest between company managers who want to get loans and the banks needs for reliable financial statements

Step-by-step explanation:

An independent examination of the company’s financial statement and its disclosures by auditors has the purpose of add credibility to the reported financial position and performance of a business prepared by the management of the company and attesting to the fairness of its presentation.