Section 324CH Lists 19 Relationships That Establish a Conflict of Interest

question 45

Multiple Choice

Section 324CH lists 19 relationships that establish a conflict of interest. Which relationship that the auditor may have with the client is NOT included?

• A) Owes an amount of more than $5000 to the audited body
• B) Has an asset that is an immaterial investment in an entity that has a controlling interest in the audited body
• C) Has an asset that is a material investment in an entity that has a controlling interest in the audited body
• D) Has an asset that is an investment in the audited body

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Definitions:

Kidney

An organ in vertebrates responsible for filtering waste products from the blood and excreting them as urine.

Dysuria

Painful urination; difficulty in urination.

Voiding

The process of emptying the bladder of urine; also known as urination.

Discomfort

Discomfort refers to a feeling of physical or mental unease, ranging from mild annoyance or pain to significant distress.