What Reason Has Been Given to Explain the Lack of Well-Developed

question 38

Multiple Choice

What reason has been given to explain the lack of well-developed auditing professions in less developed economies?

• A) Inability to train auditors given the lack of educational systems.
• B) Since creditors and investors are not major players in these economies, there is little need for audited financial statements.
• C) Investors and creditors in these countries do not want external auditors attesting to financial statement reliability.
• D) In these cultures, financial statements are presumed to be accurate and therefore do not require independent audits.

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Definitions:

South Carolina's

Pertaining to the state of South Carolina, its history, people, politics, or geographical characteristics.

Stono Rebellion

A slave uprising in 1739 in South Carolina that led to a severe tightening of the slave code and the temporary imposition of a prohibitive tax on imported slaves.

Slave Code

Laws established in the colonial and antebellum South to define the status of slaves and the rights of masters, severely restricting slaves' freedoms and rights.

Eighteenth Century

Refers to the 1700s, a period marked by significant changes globally, including the Enlightenment, the rise of industrialization, and major shifts in power and empire.