An Auditor Need Not Abide by a Particular Auditing Standard

question 21

Multiple Choice

An auditor need not abide by a particular auditing standard if the auditor believes that:

• A)the issue in question is immaterial in amount.
• B)more expertise is needed to fulfill the requirement.
• C)the requirement of the standard has not been addressed by the PCAOB.
• D)any of the above three are correct.

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Definitions:

Good Faith Bargaining

Negotiation between employers and employees' representatives that is characterized by honest, sincere intention to reach a mutually acceptable agreement.

Interest-Based Bargaining

A negotiation strategy focusing on the underlying interests and needs of the parties involved rather than fixed positions.

Traditional Bargaining

The conventional approach to labor negotiation where union and management representatives discuss terms and conditions of employment, focusing on wages and working conditions.

Nonunionized Workers

Employees who are not members of a labor union and therefore are not covered by collective bargaining agreements.