During an Audit, the Client Learns That the Auditor Has

question 70

Multiple Choice

During an audit, the client learns that the auditor has recently completed a quality system audit of a major competitor. The client then questions the auditor about the competitor's audit results. The best action for the auditor to take is to

• A) discuss the results of the audit with the client, only if the competitor agrees
• B) go offline with the client, explain that the question is unethical, and that if the client persists, additional action by the auditor will be taken
• C) explain to the client that it would be inappropriate to discuss the results of that audit
• D) obtain permission from the competitor to use the results of the audit as examples for future clients, provided that the examples are not specific to business affairs or technical processes

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Marginal Productivities

Describes the additional output generated by employing one more unit of input, holding other inputs constant.

Higher Earnings

Increased income from wages, salaries, investments, or other sources, typically compared to a previous period or average.

Better-Educated

Referring to individuals who have received a higher level of formal education, often resulting in improved skills, knowledge, and job opportunities.