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It has been said that "auditors cannot legitimately serve the 'user' public because they are hired and fired by the management of the company being audited. If management does not like the opinion given by the auditor, management can simply hire another auditing firm that would be more agreeable to the arguments made by management.
Required:
a. Write a response to the above statement. Indicate whether you agree or disagree with the assumptions made. Cite relevant legislation in support of your response.
b. Is an auditor able to give absolute assurance for a financial report audit?
Sole proprietorship, partnership and company
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