To Emphasise Auditor Independence from Management, Many Companies

question 2

Multiple Choice

To emphasise auditor independence from management, many companies:

• A) establish a policy of discouraging social conduct between company employees and the staff of the audit firm.
• B) have the independent auditor report to an audit committee of outside members of the board of directors.
• C) request that a representative of the auditor be present at the annual general meeting.
• D) appoint a member of the audit firm to the company's audit committee.

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Definitions:

Indicative

Pertaining to a grammatical mood used to make factual statements or pose questions considered to be objectively true in the world.

Monogamy

A form of relationship in which an individual has only one partner during their lifetime or at any one time.

Homophobia

The fear, hatred, discomfort with, or mistrust of people who are gay, lesbian, bisexual, or transgender.

Group Marriages

A type of marriage in which more than two people form a familial unit, sharing responsibilities, duties, and intimate relations.