Which One of the Following Would Most Likely Be a Breach

question 12

Multiple Choice

Which one of the following would most likely be a breach of the ethical rules?

• A) Auditing Telstra while owning $250 of Telstra shares
• B) Auditing the bank from which you have a home mortgage
• C) Purchasing a motor vehicle from an audit client at a substantial discount
• D) All would be equally likely to breach the ethical rules.

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Definitions:

Median-Voter Model

A theoretical model in political science and economics predicting that the outcome of majority rule voting will reflect the preferences of the median voter.

Socially Efficient Outcome

An economic situation where resources are allocated in a way that maximizes the aggregate welfare of society.

Government Bureaucracies

Complex administrative structures and procedures established by governments to manage their functions and processes.

Profit Motive

The incentive that drives individuals or entities to engage in activities that they expect will yield financial gain.