The Statement About Auditor Independence That Is True Is

question 16

Multiple Choice

The statement about auditor independence that is true is:

• A) statutory law does not recognise the need for audit independence.
• B) statutory law recognises the need for audit independence.
• C) all auditor appointments must be made by the shareholders in the AGM.
• D) the auditor has no right to be heard at the AGM.

---

Definitions:

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Maximizing Wealth

The process or strategy aimed at increasing the financial value and assets owned by an individual or corporation.

External Users

Individuals or entities outside of a company who rely on financial statements to make informed decisions about the company, including investors, creditors, and regulatory agencies.

Shareholders

Shareholders are individuals or entities that legally own one or more shares of stock in a public or private corporation, giving them a claim on its assets and earnings.