Which of the Following Statements Is True with Respect to the PCAOB

question 75

Multiple Choice

Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client?

• A)The auditor is not independent.
• B)The auditor is independent if he or she is able to maintain a level of professional detachment.
• C)The auditor can audit the financial statements only if the audit process does not culminate in the expression of an opinion on the financial statements.
• D)The auditor cannot audit the financial statements since a lack of integrity exists.

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Definitions:

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships, often stemming from a prolonged sense of insecurity and inadequacy.

Depersonalization Disorder

A mental disorder characterized by persistent or recurrent feelings of detachment from one's own body, thoughts, or emotions.

Factitious Disorder

A psychiatric disorder where an individual deliberately fabricates, exaggerates, or induces physical or psychological symptoms for the sake of assuming a sick role.

Rumination

The process of continuously thinking about the same thoughts, often negative, which can intensify feelings of stress or distress.