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When a Bid Price for Audit Services by an Audit

question 21

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When a bid price for audit services by an audit firm is quoted at an unreasonably low level to win the tender, with any unrecovered audit costs recovered subsequently through other services or by other means, it is called:


Definitions:

Community

A group of people living in the same place or having a particular characteristic in common.

Stakeholders

The groups of people affected by a firm’s decisions.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment, evaluation, and reasoning.

Consequentialism

A general approach to ethical dilemmas which requires that we consider the consequences our actions will have on relevant people.

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