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In determining the primary responsibility of the external auditor for a company's financial statements, the auditor owes primary allegiance to:

a. The management of the company being audited because the auditor is hired and paid by management.

b. The audit committee of the company being audited because that committee is responsible for coordinating and reviewing all audit activities within the company.

c. Stockholders, creditors, and the investing public.

d. The SEC, because it determines accounting principles and auditor responsibility.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9438791

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