Which of the Following Reasons for an Organization to Change

question 28

Multiple Choice

Which of the following reasons for an organization to change auditors would not be a concern to a successor auditor or an investor?

• A) Failure of the client to pay the auditor
• B) Auditee's view that the fees are too high
• C) Auditor suspicious of fraud or other problems
• D) Auditor-auditee disagreement

---

Definitions:

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes to one or several candidates in a way that can increase minority shareholder representation on the board of directors.

Shareholder

An individual or organization that owns shares in a corporation, thus holding a portion of the company's stock.

Board Of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, such as corporate policy, hiring executives, and overseeing management.

Market Rate Of Return

The average rate of return anticipated from an investment relative to the market as a whole.