An Engagement Letter Contains Express or Implied Terms of the Contractual

question 29

Multiple Choice

An engagement letter contains express or implied terms of the contractual arrangement with the client. Which of the following is not one of those terms?

• A) to exercise a reasonable degree of skill and care.
• B) to report the duties of the auditor.
• C) to be independent of the company.
• D) to give an opinion on the truth and fairness of the financial statements of the company.

---

Definitions:

Income Redistribution

Economic policies or mechanisms designed to transfer income and wealth from certain individuals or groups to others to achieve social or economic objectives.

Total Utility

The total satisfaction or benefit received by consuming a certain amount of a good or service.

Female Poverty Rate

The percentage of females living below the poverty line in a given region.

Male Poverty Rate

The proportion of the male population living below the poverty line, measured by the income level considered necessary for basic living standards in a given country or area.