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4· The external auditor of a firm Checks to make sure the firms accounting is prepared in accordance with GAAP Can fine the firm if they make errors in their financial statements. Reports to the CFO of the firm. Bears no responsibility if a firm they audit commits fraud c. d, urity laws?
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The external auditor of a firm checks to make sure the firm's accounting is prepared in accordance with GAAP. He has to apply all audit procedures that financial statement presents to investor should not have any material discrepancy and is in compliance with GAAP procedures which will ensure that financial position of the company is reported properly and no material facts have been hidden

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