An Audit Firm Is Not Considered Independent When It Performs

question 69

Multiple Choice

An audit firm is not considered independent when it performs which of the following services for a publicly traded audit client?

• A)Tax return preparation as approved by the board of directors.
• B)Basic accounting record keeping and financial statement preparation.
• C)Accounting information system design and implementation.
• D)Both B and C.
• E)None of the above.

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Definitions:

Assembly Department

A department within a manufacturing facility where components are assembled into finished products.

Materials

The raw items or components used in the manufacturing process to produce goods or services.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.