An audit independence issue might be raised by the auditor's participation in consulting services engagements. Which of the following statements is most consistent with the profession's attitude toward this issue?
A. The decision as to loss of independence must be made by the client based on the facts of the particular case.
B. The auditor should not make management decisions for an audit client.
C. The auditor who is asked to review management decisions, is also competent to make these decisions and can do so without loss of independence.
D. Information obtained as a result of a consulting services engagement is confidential to that specific engagement and should not influence performance of the attest function.
Answer: B
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Which one of the following statements is true?
a. Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account. b. Sound internal control practice dictates that disbursements should be made by check. c. The person handling the cash should also prepare the bank reconciliation. d. Petty cash can be substituted for a checking account to expedite the payment of all disbursements.
Which theory emphasizes the role of technology in determining the trade patterns of manufactured products?
a. factor-endowment theory b. theory of comparative advantage c. product life cycle theory d. theory of overlapping demands
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Center A Investment Center BInvestment center income$415,000 $525,000 Investment center average invested assets$2,400,000 $1,950,000 The return on investment (ROI) for Investment Center A is:
A. 17.3% B. 39.2% C. 19.1% D. 578.3% E. 24.1%
Answer the following statements true (T) or false (F)
In the statement of changes in financial position, sources of resources are defined as transaction debits.