BJM CO The following scenario relates to questions...

BJM CO The following scenario relates to questions 11 – 15. You are an audit senior of YHT & Co and have worked on the external audit of BJM Co (BJM), an unlisted company, since your firm was appointed external auditor two years ago. BJM owns a chain of nine restaurants and is a successful company. BJM has always been subject to national hygiene regulations, especially in relation to the food preparation process. Non-compliance can result in a large fine or closure of the restaurant concerned. Despite running a successful company, BJM’s Board have often needed to be reminded of some fundamental principles and you often have to explain key concepts. Which of the following statements best defines the external audit？

A、The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are fairly presented.

B、The external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system.

C、The external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies.

D、The external audit provides negative assurance on the truth and fairness of a company's financial statements.