According to the Profession's Ethical Standards, an Auditor Would Be

question 84

Multiple Choice

According to the profession's ethical standards, an auditor would be considered independent in which one of the following instances?

• A) The client owes the auditor fees for the last two annual audits.
• B) An employee of the audit firm acts as the honorary treasurer for a charity that is an audit client.
• C) The auditor's main bank account is held at a client financial institution.
• D) The auditor is also a solicitor advising the client.

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Definitions:

Personality Traits

Enduring characteristics or behaviors that define an individual's patterns of feeling, thinking, and acting across different situations.

Genetically Determined

Traits or characteristics that are influenced by genes inherited from parents.

Reinforcement

In behavioral psychology, it is the process of encouraging or establishing a pattern of behavior by offering reward or punishment.

Psychoanalytic

Pertaining to psychoanalysis, the theory and therapy developed by Freud that focuses on exploring unconscious desires and conflicts.