Which of These Is Not an Ethical Consideration for the Auditor

question 41

Multiple Choice

Which of these is not an ethical consideration for the auditor in deciding whether to accept an audit engagement?

• A) identifying intended users of the audited financial statements.
• B) evaluate circumstances that would compromise their independence.
• C) assessing their competence to perform the audit.
• D) determine their ability to use due care in performing the audit.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of goods and can be easily traced to the product.

Direct Labour

The workforce directly involved in manufacturing goods or providing services, where their labor can be directly tied to end products.

Variable Manufacturing Overhead

Costs in the production process that vary with the level of output, such as utilities for the machinery.

Specialized Machine Cost

The acquisition and operational costs associated with machinery that is designed for specific, specialized tasks in production.