Which of the Following Is Not a Conflict of Interest

question 17

Multiple Choice

Which of the following is not a conflict of interest in accounting firms?

• A)The firm provides consulting as well as rating creditworthiness.
• B)Auditors may be pressured to skew their opinions so the client will stay with the firm.
• C)Auditors may be reluctant to criticize advice put into place by nonaudit personnel of the firm.
• D)Auditors release an overly favorable audit in order to solicit business.

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Definitions:

Club Sponsor

Refers to an individual or organization that provides support, often financial, to a club, typically in exchange for advertising opportunities or goodwill.

Customer Demand

The quantity of products or services that consumers are willing and able to purchase at various prices during a specific period.

Computer Clock

A mechanism within a computer that keeps track of time and coordinates the execution of tasks.

Wasted Capacity

Refers to the portion of the potential production output or service capability that remains unused or not effectively utilized.