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:

Civil Cases

Legal disputes between two or more parties where compensation or specific performance is sought, not involving criminal sanctions.

Criminal Cases

Legal proceedings brought against individuals or entities charged with violations of criminal law, seeking to establish guilt and dispense justice.

Appellate Courts

Courts that have the authority to review and change the outcomes of cases decided by lower courts.

Trial Court

The level of court where legal disputes are first presented and heard, including evidence presentation and witness testimony, to reach a verdict or decision.