ABC Firm Are the Auditors of XYZ Company

question 15

Multiple Choice

ABC firm are the auditors of XYZ Company. The partner responsible for the audit has recently spent a week working with XYZ as a paid consultant on their internal control systems. The ethical principle that has been breached is:

• A) auditor independence.
• B) auditor appointment.
• C) auditor rotation.
• D) auditor competence.

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Definitions:

Cash Inflow

The total amount of money being transferred into a business, typically measured over a certain period of time.

Budgeted Sales

The forecasted sales revenue a company expects to generate in a future period, based on market analysis, historical data, and sales targets.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, helping an organization to manage its cash balance.

Office Salaries Expense

An account that records the total salary expenses for office employees over a certain period.