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:

Multinational Corporations

Companies that operate in several countries around the world, managing production or delivering services in more than one country.

Labor Standards

Regulations and laws that establish the minimum requirements for working conditions, including hours of work, wages, safety, and health protections for workers.

ILO

The International Labour Organization, a UN agency focused on setting international labor standards and promoting decent work conditions.

Legally Enforceable

A characteristic of contracts or agreements that can be upheld and compelled by law if not voluntarily honored by the parties involved.