In the Investigation of a Potential New Client, Besides Inquiring

question 46

Multiple Choice

In the investigation of a potential new client, besides inquiring of the predecessor auditor, the successor auditor should make inquires of other third parties. Which of the following is least likely to be included in this inquiry?

• A) attorneys
• B) bankers
• C) the chamber of commerce
• D) customers
• E) the better business bureau

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Definitions:

Espoused Values

Espoused values are the explicitly stated values and norms preferred by an organization, which are often communicated through its mission and vision statements.

Global Organization

An entity that operates in multiple countries, often with a centralized headquarter but with operational facilities spread worldwide.

National Cultures

The set of shared values, beliefs, and norms that distinguish the people of one country from those of another.

High Power Distance

A cultural dimension where there is acceptance of unequal power distribution within societies or organizations.