The Material Financial Interests Rule Means That

question 70

Multiple Choice

The material financial interests rule means that:

• A) an auditor cannot accept payment from the auditee.
• B) an auditor should be involved in the executive function of a client to maximise the benefits achieved from the engagement.
• C) a public accounting firm cannot accept an audit client if anyone in the practice has a material shareholding in the potential client.
• D) an auditor cannot be assigned to the audit of a bank with which that auditor has a home mortgage.

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Definitions:

International Trade Deficit

A situation that occurs when a country imports more goods and services than it exports, leading to a negative balance of trade.

Trade Surplus

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Services

Intangible products or activities provided by one party to another, often involving a time-based performance to meet needs or bring benefits to recipients.

Canadian Dollar

The currency of Canada, represented by the symbol CAD or simply $ within Canada.