Farah Is Currently Auditing Software Synx,a Public Company

question 8

Multiple Choice

Farah is currently auditing Software Synx,a public company.After a long day of work,Farah goes for a drink with her friend John who mentions that he owns shares of Software Synx.Farah indicates that John should hold on to his shares as they will go up next week when the financial statements are released and show an increase of 12% for revenues.Which element of quality control is compromised by Farah?

• A)relevant ethical requirements
• B)independence
• C)human resources
• D)engagement performance

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Definitions:

Consumer Price Index

An indicator that assesses the typical shift through time in the expenses urban purchasers face for a predetermined array of consumer items and services.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period.

Consumer Price Index

A measure of the average shift in costs for various consumer items and services bought by urban dwellers, the Consumer Price Index reveals how these prices change over time.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year.