Which of the Following Statements Best Explains Why the Auditing

question 20

Multiple Choice

Which of the following statements best explains why the auditing profession has found it essential to promulgate ethical standards and to establish means for ensuring their observance?

• A)Ethical standards that emphasise excellence in performance over material rewards establish a reputation for competence and character.
• B)Vigorous enforcement of an established code of ethics is the best way to prevent unscrupulous acts.
• C)A distinguishing mark of a profession is setting appropriate fees.
• D)A requirement for a profession is to establish ethical standards that stress a responsibility to the public, clients and colleagues.

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Definitions:

Growing Pains

Challenges and difficulties experienced by a business or organization as it expands.

Exit Strategy

A planned approach to liquidating a position in a financial asset or disposing of a business investment, usually aimed at minimizing losses or maximizing gains.

Resource Maturity

Describes the stage of development and utilization of resources within an organization, indicating whether they are efficiently leveraged and sustainable for long-term goals.

Resource Allocator

A role or system responsible for distributing resources and assets efficiently across different parts of an organization or project.