Where the Fees from an Audit Client Are More Than

question 4

Multiple Choice

Where the fees from an audit client are more than 15% of total fees, the public accounting firm should ensure:

• A) that the audit work is reviewed by an accountant, not a member of the audit team.
• B) adequate quality control procedures are in place and that the audit work is reviewed by an accountant, not a member of the audit team.
• C) that all members of the audit team are independent, both in fact and in appearance.
• D) that adequate quality control procedures are in place.

---

Definitions:

Costs

Expenses or expenditures required for something; can refer to financial, emotional, or other forms of costs.

Rewards

Benefits, incentives, or compensations received as a result of one's actions or behaviors.

Labeling Theory

The view that reactions of, and characterizations by, others are an essential element in deviance.

Rule-Breaking Behaviors

Actions that violate established guidelines, laws, or social norms.