Which of the Following Is True in the Case of an Auditor

question 135

Multiple Choice

Which of the following is true in the case of an auditor communicating with a continuing client in the beginning of a contract?

• A)A new engagement letter is not needed if the terms of engagement remain unchanged
• B)No reminder of the engagement terms is needed if no revisions are made to the engagement letter
• C)No reminder of the engagement terms is needed if a continuance decision is made.
• D)No engagement letter is needed in all cases of continuance decision.

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Definitions:

WARP

The Weak Axiom of Revealed Preference (WARP) is a criterion used to check for consistency in consumer choice behavior under the assumption of rationality.

Bundle

A set of goods or services sold together as a single package.

Revealed Preferences

An economic theory that determines consumer preferences by observing their purchasing behavior rather than through direct inquiry.

Francs

A currency unit formerly used in France and some other countries, and still used in some territories.