A PA Firm Can Experience High Levels of Business Risk

question 33

Multiple Choice

A PA firm can experience high levels of business risk if the audit firm

• A)does a poor job preparing client risk profiles.
• B)pays its employees wages that are not in line with the market.
• C)experiences significant litigation or has clients declare bankruptcy.
• D)has a generous vacation policy for its staff.

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Definitions:

Experimental Group

In research, a group of subjects who are exposed to the variable under investigation, allowing researchers to measure the effect of the variable.

Confidentiality

Confidentiality refers to the ethical principle or legal requirement that certain shared information is kept private, especially in contexts such as healthcare, law, or personal services.

Privacy

Privacy is the right to keep personal information out of the public domain and control the dissemination of data about oneself.

Ethical

Relating to moral principles or the branch of knowledge dealing with these, often guiding conduct.