Which of the Following Represents a Situation in Which an Auditor

question 68

Multiple Choice

Which of the following represents a situation in which an auditor is independent of its client?

• A)The auditor is paid by the client organization rather than the SEC.
• B)The auditor takes a personal loan from the president of the company.
• C)The auditor's dependent son holds 25 shares of the client's common stock.
• D)The auditor has not received payment for the previous audit services.

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Definitions:

British Pound

The currency of the United Kingdom, which is one of the world's major currencies traded on foreign exchange markets.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency globally.

Trade Deficit

A situation where a country's imports exceed its exports, resulting in a negative balance of trade.

Dollar Denominated Bonds

Bonds issued in the United States that are payable in U.S. dollars, irrespective of the issuer's nationality.