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      Question

      What is a key objective of an external

      audit?
      A Maximizing company profits Correct Answer Incorrect Answer
      B Detecting fraud and errors Correct Answer Incorrect Answer
      C Setting financial policies Correct Answer Incorrect Answer
      D Reducing tax liabilities Correct Answer Incorrect Answer
      E Managing investments Correct Answer Incorrect Answer

      Solution

      A key objective of an external audit is to detect fraud and errors in financial statements, providing assurance that they are accurate and reliable.

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