Lara owns a mid-sized company that has been in business for 10 years. The business has always covered its expenses, but it has never made the kind of profit that Lara anticipated when she started it. She decides to hire an outside accountant to audit her finances. How will this help her business?

Question

Lara owns a mid-sized company that has been in business for 10 years. The business has always covered its expenses, but it has never made the kind of profit that Lara anticipated when she started it. She decides to hire an outside accountant to audit her finances. How will this help her business?
A. It will dramatically improve the finances of the company.
B. It will let her determine whether or not the company is profitable.
C. It could let her know if there are issues with her internal accounting.
D. It won't help much since she already knows that the business is not very profitable.

GPT 3.5 · Answer

C. It could let her know if there are issues with her internal accounting.

By hiring an outside accountant to audit her finances, Lara will be able to get an unbiased and expert opinion on the financial health of her company. The accountant can identify any irregularities, errors or inefficiencies in her internal accounting practices, which may be hindering the company's profitability. This information can then be used to make necessary changes and improvements to the financial management of the business, potentially leading to increased profits.