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Bankers who are processing loan applications from companies seeking large loans will probably ask for financial statements audited by an independent CPA because________________

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Answer:

they believe that independent opinion expressed by an independent auditor on such a financial statement is more reliable than financial statement not from such a source due to potential conflict of interest.

Step-by-step explanation:

The financial statement audited by an independent CPA is more reliable than the ones audited by a non-independent CPA. This is so because of the statutory responsibilities of the independent CPA.

The non-independent CPA is under the control of the management but the independent CPA is not responsible to the management but the shareholders.

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