When Considering the Desirability of Staff Continuity on an Engagement

question 2

Multiple Choice

When considering the desirability of staff continuity on an engagement, an audit partner must always:

• A) be satisfied that the team has the appropriate competence and capabilities.
• B) ensure the client is satisfied.
• C) ensure confidentiality is not compromised.
• D) ensure the audit staff is satisfied.

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Definitions:

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been deducted from total revenue.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Common Dividends

Dividends distributed to holders of common stock, often based on the company's profitability and declared by its board of directors.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.