Which of the Following Statements Is False Regarding Partner Rotation

question 89

Multiple Choice

Which of the following statements is false regarding partner rotation and audit firm rotation?

• A) During a cooling off period, the individual or audit firm may not engage in any meaningful audit-related interactions with the client.
• B) Rules are the same internationally regarding the terms of mandatory partner rotation and mandatory audit firm rotation.
• C) The issue associated with mandatory partner or audit firm rotation is the familiarity threat.
• D) Having a longstanding relationship with the client could aid audit quality because of the knowledge that the partner and members of the engagement team gain through time.

---

Definitions:

Geologic Events

Significant occurrences in the Earth's history that have shaped its surface and structure, including volcanic eruptions, earthquakes, and glaciations.

Deposition

The geological process in which sediments, soil, and rocks are added to a landform or landmass due to the action of wind, water, or ice.

Metamorphic Rocks

Rocks that have been transformed from pre-existing rock types through heat, pressure, and/or chemically active fluids.

Granite

A hard, granular, intrusive igneous rock composed mainly of quartz, mica, and feldspar.