Which of the Following Is an Incentive That Influences Auditors

question 51

Multiple Choice

Which of the following is an incentive that influences auditors to remain independent and to provide fair and reliable financial information?

• A) Management would be taking a large legal risk if they interfere with the auditors.
• B) External auditors are taking a large legal risk if they allow their independence and integrity to be compromised.
• C) Auditors have a reputation to protect.
• D) All of these are correct.

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Definitions:

Contextual Variables

Factors that influence the setting or environment in which behaviors, events, or data are situated, affecting their interpretation.

Informed Decision

A decision made based on a thorough understanding of the facts, implications, and consequences, often involving the consultation of relevant information or advice.

Appropriate Language

The use of language that is considered suitable and respectful within a particular context or setting, taking into account cultural and situational sensitivities.

User's Manual

A document providing instructions for the installation, operation, and maintenance of a product or system.