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.

Understand the major domains of ethical theory and their relevance to leadership.

Assess the relationship between honesty and leadership effectiveness.

Recognize the role of ethical theory in guiding decisions regarding right and wrong in leadership contexts.

Analyze the impact of leader ethics on organizational ethical climate.

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Definitions:

Socialization

The process through which individuals learn and internalize the values, beliefs, and norms of their culture, thereby becoming functioning members of society.

Mental Illness

A broad category of conditions affecting mood, thinking, and behavior, often characterized by distress and impairment in functioning.

Negative Stereotypes

Harmful and oversimplified beliefs or perceptions about a group of people based on their race, gender, ethnicity, or other characteristics.

Media Imperialism

The dominance of larger countries' media industries over smaller nations, influencing their culture and societal norms.