In Which of the Following Instances Would the Independence of the Auditor

question 34

Multiple Choice

In which of the following instances would the independence of the auditor most likely not be considered to be impaired?

• A) He or she has been retained as the auditor of a charitable organisation in which the spouse of the auditor serves as treasurer.
• B) He or she has been retained as the auditor of a company in which the auditor's investment club owns a 10 per cent interest.
• C) He or she has been retained as the auditor of a large manufacturing company to which the auditor has a $6000 loan.
• D) He or she has been retained as the auditor of a company from which the auditor purchased their latest motor vehicle at normal list price.

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Definitions:

Time Before

Refers to the period or moments that precede a particular event or point in time.

Violations-of-Expectations Procedure

An experimental technique used in developmental psychology to assess infants' understanding of physical and social norms by observing their reactions to unexpected events.

Infants' Tendencies

Natural or instinctual inclinations or propensities observed in babies, such as innate reflexes or preferences.

Surprising Events

Occurrences that defy individuals' expectations or predictions, often leading to cognitive and emotional responses.