The independent auditor's primary responsibility is to A. the shareholders B. the directors C. the company's creditors (payables) D. the company's bank

Break Down the Problem

To answer this question, we need to identify the primary responsibility of an independent auditor among the given options.

Relevant Concepts

Independent auditors are responsible for assessing the fairness and accuracy of a company's financial statements. Their role is primarily towards the entities that rely on those statements for decision-making.

Analysis and Detail

1. Shareholders: They depend on the financial statements to make informed investment decisions; hence, the auditor's role is significant to them.
2. Directors: While auditors interact with the board, they provide an impartial review rather than serving their interests directly.
3. Creditors: They need accurate financial information to evaluate the company's ability to pay its debts, but they are not the primary focus.
4. Bank: Similar to creditors, banks require reliable data for loan decisions but are a subset of creditor interests.

Verify and Summarize

When considering who benefits most from an independent audit, shareholders receive the most direct impact. The independent auditor's role is to ensure that the financial statements presented to shareholders are factual and adhere to accounting standards.

Final Answer

The independent auditor's primary responsibility is to A. the shareholders.