A Conflict of Interest Exists When

question 87

Multiple Choice

A conflict of interest exists when:

• A) A professional service or relationship creates a situation that might impair completion of the audit
• B) A professional service or relationship creates a situation that might impair objective judgment
• C) Professional skepticism fails to meet objective standards
• D) All of the above

---

Definitions:

Regression Stage

A phase of development or transition characterized by a return to earlier patterns of behavior, often as a response to stress or trauma.

Trickle-across Effect

A trend diffusion process where fashion and ideas move horizontally within similar social levels or groups.

Class Structure

The organization of society into hierarchies based on socioeconomic status, class, or other distinctions.

Fashion Acceptance Cycle

The process through which new fashion trends are introduced, rise in popularity, peak, and eventually decline.