A Succinct, but Comprehensive Definition of Independence Is That an Auditor

question 10

Multiple Choice

A succinct, but comprehensive definition of independence is that an auditor

• A)Must be independent in fact and in appearance in order to maintain credibility.
• B)Must not have a direct financial interest in a client.
• C)Must have a license to practice as a public accountant.
• D)Must not take on as an audit client a company owned by a member of his/her immediate family.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Virtual Team

A group of people that works together across geographical, temporal, and organizational boundaries, often communicating via digital tools.

Information Technologies

The study and use of systems for storing, retrieving, and sending information, including computers and telecommunications.

Collaborate

To work jointly with others or together especially in an intellectual endeavor.