Why Is Auditing Important in a Free Market Society

question 41

Multiple Choice

Why is auditing important in a free market society?

• A) The public requires auditors to function as divisions of regulatory bodies.
• B) Auditors detect all errors and fraud perpetrated by company employees.
• C) It provides reliable information upon which to judge economic performance.
• D) The auditor is an amiable insurance policy for investors.
• E) All of the above are true.

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Definitions:

Voltage Spikes

Sudden increases in voltage significantly above the normal level for a short duration, potentially harmful to electrical components.

Transmission ECU

An electronic control unit responsible for managing the operation of a vehicle's transmission, ensuring optimal performance and fuel efficiency.

Hall-effect Sensors

Sensors that detect the presence of a magnetic field and convert it into an electrical signal.

Variable Capacitance Sensors

Sensors that detect changes in capacitance, which can be used to measure various parameters, such as pressure, position, or acceleration.