It Is Important for the Auditor to Be Independent Because

question 17

Multiple Choice

It is important for the auditor to be independent because

• A)otherwise the auditor would not charge a fair rate to the client.
• B)otherwise the auditor might not be as knowledgeable of the subject matter and the criteria.
• C)this will prevent bias in accumulating and evaluating evidence.
• D)the Canadian tax authorities require that the auditor be independent.

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Definitions:

Common Size Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods and companies.

Sales Dollar

A term that reflects the total revenue generated from sales activities, measured in dollars.

Bottom Line

A term referring to a company's net income, indicating the essential outcome of its financial activities over a specified period.

Time-series Analysis

A statistical technique that analyzes a series of data points, usually collected at consistent intervals, to identify trends, cycles, or seasonal variations.