On July 1, 2015, the SEC Charged Deloitte & Touche

question 22

Multiple Choice

On July 1, 2015, the SEC charged Deloitte & Touche with violating auditor independence because:

• A) It provided certain nonaudit services to an audit client
• B) It provided audit services to a client when engaged in a business relationship with management
• C) Its consulting affiliate kept a business relationship with a trustee serving on the board of three funds Deloitte audited
• D) Its consulting affiliate owned stock of a firm Deloitte audited

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Definitions:

Personal Selling

A sales method involving direct face-to-face interaction between a salesperson and a prospective buyer to persuade the buyer to make a purchase.

Coffeemaker

A kitchen appliance used for brewing coffee by automatically heating water and directing it over ground coffee beans.

Intangible Activities

Tasks or operations that do not result in a physical product but provide value or service to customers.

Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including info about the target market, competitors, and customers, to inform business decisions.