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.

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Definitions:

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis of statistical parameters.

Matched Pairs Experiment

An experimental design in which subjects are paired based on similarity in one or more characteristics, with one member of each pair receiving the treatment and the other serving as a control.

T-Test

A statistical test used to compare the mean values of two groups, which might come from independent samples or from matched pairs of samples.

Degrees Of Freedom

The number of independent values within a statistical calculation that are free to vary without violating any constraints.