The correct answer is: D. Shareholders
A special audit report is a report that is prepared by an auditor to address a specific issue or concern that has been raised about a company’s financial statements. The report is typically addressed to the company’s shareholders, as they are the owners of the company and have the right to know about any issues that could affect the value of their investment.
The report will typically include a description of the issue or concern, the auditor’s findings, and any recommendations that the auditor makes. The report may also include information about the auditor’s qualifications and independence.
The purpose of a special audit report is to provide shareholders with information about a specific issue or concern that could affect the value of their investment. The report can help shareholders to make informed decisions about whether to continue to invest in the company.
The following are the possible options for the question:
- A. Manager
A manager is an employee who is responsible for the day-to-day operations of a company. A manager is not typically responsible for preparing or reviewing financial statements. Therefore, a special audit report would not typically be addressed to a manager.
- B. Director
A director is a member of a company’s board of directors. The board of directors is responsible for overseeing the management of the company. However, the board of directors is not typically responsible for preparing or reviewing financial statements. Therefore, a special audit report would not typically be addressed to a director.
- C. Central Government
The central government is the government of a country. The central government is not typically responsible for preparing or reviewing financial statements. Therefore, a special audit report would not typically be addressed to the central government.
- D. Shareholders
Shareholders are the owners of a company. Shareholders have the right to receive information about the company’s financial performance. Therefore, a special audit report would typically be addressed to shareholders.