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:

Status Crystallization

A social science concept describing the clarity or consistency of an individual's social status across different dimensions such as wealth, education, and occupation.

Social-Class Inconsistency

The condition where an individual's societal position doesn't align consistently with traditional markers of social class, such as income, occupation, and education.

Over-Privileged

Describes individuals or groups having more advantages, resources, or opportunities than is fair or equitable.

Income

The amount of money received by a person or entity over a specified period, often derived from labor, capital, or other sources.