Which of the Following Best Describes Why Publicly-Traded Corporations Follow

question 21

Multiple Choice

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

• A)To promote an adversarial relationship between the auditor and the corporation's management.
• B)To enhance auditor independence from the management of the corporation.
• C)To encourage a policy of rotation of the independent auditors.
• D)To give management more leverage over the auditor's decisions.

---

Definitions:

Organizational Behavior

A field of study that investigates how individuals, groups, and structure affect and are affected by behavior within organizations.

Departments

Distinct divisions within an organization, company, or institution, specializing in specific tasks or functions.

People Skills

The ability to communicate, interact, and work well with others.

Workforce Diversity

The inclusion of individuals from various backgrounds, cultures, ages, genders, and abilities in a company's workforce, enhancing creativity and innovation.