Which of the Following Is a Possible Safeguard Implemented by the Client

question 2

Multiple Choice

Which of the following is a possible safeguard implemented by the client that might mitigate an audit independence threat?

• A)CPA firm leaderships stresses the importance of complying with professional standards.
• B)Management has suitable skills to make managerial decisions.
• C)Management maintains substantial common stock investments in the company.
• D)Top management selects the auditing firm.

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Definitions:

Deference

The act of submitting to the wishes, judgment, or opinion of another person out of respect or reverence.

Embarrassing Oneself

The act of causing oneself to feel awkward, self-conscious, or ashamed in public or social situations.

Social Anxiety Disorder

A chronic mental health condition characterized by overwhelming anxiety and self-consciousness in everyday social situations.

Phobia

An intense, irrational fear of, or aversion to, specific objects, activities, or situations.