In Determining Auditor Independence,the SEC Considers Which of the Following

question 17

Multiple Choice

In determining auditor independence,the SEC considers which of the following as an independence impairment?

• A)An auditor performs the accounting work and then audits it.
• B)An auditor has no conflicting interest with the client.
• C)An auditor does not act as an advocate for the audit client.
• D)An auditor does not act as an employee of the audit client.

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Definitions:

Generalized Validity

Refers to the extent to which the results of an assessment can be reliably applied across different contexts, populations, or settings.

Primary Types

Refers to the main or most important categories or classifications within a broader system or framework.

Group Differentiation

The process by which members of a group distinguish themselves from members of other groups through social, cultural, or physical markers.

Construct Validity

The extent to which a test may be said to accurately and thoroughly measure a particular construct or trait.