Which of the Following Categories Is Not a Threat to an Auditor's

question 17

Multiple Choice

Which of the following categories is not a threat to an auditor's independence?

• A) The auditor performed the work that is being audited.
• B) The auditor lacks any vested interest in the results of the audit.
• C) The auditor has become too close to the audited organization over time.
• D) The auditor makes management decisions.

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Definitions:

Marginal Cost

The upsurge in full costs resulting from the fabrication of an additional unit of a product or service.

Marginal-Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good or service changes as production volume changes.

Average-Total-Cost Curve

A curve showing the average total cost of producing different levels of output in the short run.

Punishment

A consequence imposed after an undesirable behavior, aimed at reducing that behavior.