American Institute of Certified Public Accountants (AICPA) Practice Exam

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What guidance should a member follow if there is a doubt about the correctness of financial information?

Assume it is correct unless proven otherwise.
Consult with external auditors for verification.
Make adjustments as necessary.
Follow the supervisor’s instructions blindly.

The correct answer is: Consult with external auditors for verification.

When there is doubt about the correctness of financial information, consulting with external auditors for verification is the most prudent approach. External auditors are independent professionals who provide objective assessments of financial statements and internal controls. Their expertise enables them to evaluate the accuracy and reliability of the financial information presented. By seeking the input of external auditors, a member can gain insights into any potential issues or discrepancies that may need to be addressed. This course of action not only helps ensure compliance with applicable accounting standards and regulations but also reinforces the integrity and trustworthiness of the financial information being reported. In situations where financial information is questioned, relying solely on one's assumption of its correctness or following a supervisor's instructions without seeking further verification can lead to significant risks and may compromise the financial reporting process. Additionally, making adjustments without consulting with auditors may result in overlooking material errors or misstatements. Therefore, engaging with external auditors is a critical step to uphold the accuracy and credibility of financial data.