External audits of financial statements are typically performed by which credentialed professional?

• A. Certified Public Accountant (CPA)
• B. Chartered Accountant (CA)
• C. Certified Management Accountant (CMA)
• D. Financial Analyst (FA)

Answer: (A)

External audits of financial statements are performed by licensed professionals who can independently examine and express an opinion on the statements. In the United States, that role is filled by Certified Public Accountants. CPAs are licensed by state boards, and meeting education, passing the CPA exam, gaining required experience, and following ethical standards are all part of earning and maintaining that credential. This license enables them to perform audits and issue audit opinions, with public-company audits overseen by the PCAOB and requiring at least one CPA on the engagement team to ensure independence and adherence to auditing standards. The other credentials aren’t the typical license for external financial statement audits: Chartered Accountant is the international counterpart used in other countries, CMA is focused on management accounting and internal decision support, and Financial Analyst is a finance role without licensing to conduct audits.