Question

Independent auditors are generally actively involved in each of the following tasks except:

A.Preparation of a client's financial statements and accompanying notes.
B.Advising client management as to the applicability of a new accounting standard.
C.Proposing adjustments to a client's financial statements.
D.Advising client management about the presentation of the financial statements.

Answer 1

Independent auditors are generally actively involved in various tasks, but they are not responsible for advising client management about the presentation of financial statements.

Step-by-step explanation:

Independent auditors are generally actively involved in each of the following tasks except:

1. Preparation of a client's financial statements and accompanying notes.
2. Advising client management as to the applicability of a new accounting standard.
3. Proposing adjustments to a client's financial statements.
4. Advising client management about the presentation of the financial statements.

The correct answer is D, advising client management about the presentation of the financial statements. This task is typically the responsibility of management or those preparing the financial statements, not independent auditors.