Auditors of Governmental Units Would Not Be Presumed to Be

question 98

Multiple Choice

Auditors of governmental units would not be presumed to be independent if they are

• A)free from sources of personal impairment.
• B)independent under AICPA Code of Professional Conduct rules.
• C)auditing the branch of government to which they are assigned.
• D)elected or appointed and reporting to a legislative body of government.

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Definitions:

Private Ownership

The legal possession of property by non-governmental entities or individuals, allowing control over its use and the benefits it generates.

Capitalism

An economic system in which productive resources are owned privately and goods and resources are allocated through market prices.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return, often referring to the trading of goods, services, or currencies.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.