Using Partners Who Do Not Report to Audit Partners for the Provision

question 16

Multiple Choice

Using partners who do not report to audit partners for the provision of non-assurance services to an assurance client would be an example of:

• A)Safeguards reducing the risk of conflict of interest created by the profession, legislation, or regulation
• B)Safeguards reducing the risk of conflict of interest within a client
• C)Safeguards reducing the risk of conflict of interest within a professional accounting firm
• D)All of the above
• E)(a)and (c)only

---

Definitions:

Gross Method

An accounting method for recording purchases at the gross invoice amount before deducting any cash discounts.

Defective Merchandise

Products that are found to have flaws or faults which impair their functionality, appearance, or intended use.

Periodic Inventory System

An inventory system that updates inventory and cost of goods sold records at the end of an accounting period.