Which of the Following Generally Accepted Auditing Standards Suggests That

question 39

Multiple Choice

Which of the following generally accepted auditing standards suggests that an auditor should not have a financial interest in an audit client?

• A)Professional care
• B)Disclosure
• C)Independence
• D)Some other standard

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Definitions:

Comprehensive Income

The total of all operating and financial events that affect the equity of a company, beyond just net income.

Unrealized Gains and Losses

Increases or decreases in the value of investments that have not yet been sold by the holder.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally.

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a specific jurisdiction, known as Generally Accepted Accounting Principles.