Assume the External Auditor of a Client Entity Also Served

question 71

Multiple Choice

Assume the external auditor of a client entity also served on the client's board of directors.What aspect of independence would be violated?

• A)The auditor may be exposed to an intimidation threat by the client
• B)The auditor is involved in a business relationship with the client
• C)The auditor serves in a management decision making position with the client
• D)All of the above

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Definitions:

Caring Experiential

Relates to the lived experience or practice of caring, emphasizing the importance of personal interaction in emotional and physical well-being.

Spiritual-Ethical

Pertaining to principles and values that are rooted in spiritual beliefs and the distinction between right and wrong.

Social-Cultural

pertains to the influences that society's structures and cultural practices have on individuals and groups.

Humanistic

Relating to or supporting the principles of humanism, emphasizing the value and agency of human beings, individually and collectively.