In Accepting an Engagement, an Auditor Takes on Professional Responsibilities

question 15

Multiple Choice

In accepting an engagement, an auditor takes on professional responsibilities to:

• A) the public.
• B) the client.
• C) the client and the public.
• D) the public, the client, and other members of the profession.

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Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Buying Division

A dedicated department within a company that is responsible for making all purchase-related decisions and transactions.

Selling Division

A segment of a business organization responsible for the external sales of the company’s products or services.

Profit Centers

Divisions or segments of a business that are responsible for generating revenue and profit above their direct and indirect costs.