The Ethical Rules State That Independence of the External Audit

question 22

Multiple Choice

The ethical rules state that independence of the external audit firm is considered to be impaired if:

• A)the audit firm provides management advisory services to the client.
• B)the audit partner purchases the client's product at normal retail prices.
• C)the audit firm has served as the external auditor for many years.
• D)an immediate relative of one of the partners is the beneficial owner of shares forming a material part of the share capital of the client.

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Definitions:

Smartphones and Tablets

Portable electronic devices with touchscreens used for a variety of tasks, including communication, internet browsing, and media consumption.

Mobile Communication Technology

Technologies that enable communication and data exchange through mobile devices such as smartphones and tablets.

Immediate Access

The ability to obtain or use resources, information, or services without delay.

Social Networks

Online services that enable individual and organizational members to form connections and share information.