Problem

1. First, select the choice that best describes the need an independent audit satisfies.

An independent audit is a means of satisfying the need for reliable information on the part of the decision makers.

2. Select a change in accounting and business operations over the last decade that has increased the need for independent audits.

Increased global activities of many businesses.

3. Identify the reason(s) why the factor you selected in the preceding step is important.

A. Multiple product lines and transaction locations.
B. Possibly millions of transactions processed daily via sophisticated computerized systems.
C. Foreign exchange effects on transactions.
D. Owners also managing the daily activities of the company.
E. New accounting standards are issued on a regular basis.
F. Directors not involved in? day-to-day operations or decisions.