Besides Consideration of All of the Other Principles, in Deciding

question 74

Multiple Choice

Besides consideration of all of the other principles, in deciding whether to provide specific services, which of the following is also required by the Scope and Nature of Services principle:

• A) Determine that the requested service is not currently being provided by any other professional.
• B) Determine whether any service requested of an audit client would create reasonable assurance.
• C) Practice only in a firm that has implemented internal quality control procedures.
• D) Assess whether the requested service is in conflict with the role of a professional.
• E) Determine whether any service requested of a consulting client would create a conflict of interest.

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Definitions:

Negotiated

The process by which parties come to a mutual agreement through discussion and compromise.

Pre-emptive Rights

The right of existing shareholders in a company to have the first opportunity to purchase new shares issued by the company, to maintain their proportionate ownership.

Logging Operation

The process of cutting down trees, removing them from the forest, and transporting the logs to be processed into lumber or other wood products.

Shareholders Agreement

A contract among the shareholders of a company detailing their rights, obligations, and the management of the company.