Which of the Following Would Most Likely Be a Violation

question 51

Multiple Choice

Which of the following would most likely be a violation of the independence requirement found in the responsibilities principle under generally accepted auditing standards?

• A)An auditor on the engagement has a distant relative who is employed by a vendor that does a significant amount of business with clients.
• B)The client's Chief Executive Officer graduated from the same university as the partner in charge of the accounting firm.
• C)An auditor on the engagement owns a financial interest in the stock of the client.
• D)The client provides financial support to a number of charitable causes that also receive support from the accounting firm.

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Definitions:

Behavioral Approach

A method of studying leadership or other psychological phenomena by observing and analyzing observable behaviors rather than internal processes.

Leadership Behaviors

Actions and attitudes demonstrated by leaders, including how they communicate, motivate, and guide their followers toward achieving goals.

Universal Style

A hypothetical leadership approach presumed to be effective across different situations and groups, though in practice, leadership effectiveness often varies with context.

Team Outcomes

The results or outputs produced by a group working together towards common objectives.