Which of the Following Statements Regarding Auditors Is FALSE

question 39

Multiple Choice

Which of the following statements regarding auditors is FALSE?

• A)Most auditors have a longstanding relationship with their audit clients;this extended relationship and the auditors' desire to keep the lucrative auditing fees makes auditors less willing to challenge management.
• B)Most accounting firms have developed large and extremely profitable consulting divisions.Obviously,if an audit team refuses to accommodate a request by a client's management,that client will be less likely to choose the accounting firm's consulting division for its next consulting contract.
• C)Auditing firms are supposed to ensure that a company's financial statements accurately reflect the financial state of the firm.
• D)In the post Sarbanes-Oxley world,accounting firms are no longer allowed to offer both audit and non-audit services to the same firm.

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Definitions:

Project Profiling

The process of analyzing the characteristics of a project to understand its scope, complexity, and potential risks.

Ecological Attributes

Characteristics or properties of an environment or ecosystem that determine its capacity to support life and maintain ecological processes.

Project Complexity

Refers to the degree of challenge involved in managing a project, due to factors such as size, uncertainty, and the number of interdependent elements.

Living Conditions

The circumstances affecting the daily life and welfare of people, such as their housing, environment, and financial situation.