The Fourth Directive of the European Commission

question 13

Multiple Choice

The Fourth Directive of the European Commission:

• A) aims at harmonizing the educational and training prerequisites necessary to become a statutory auditor.
• B) requires that the auditor's report include whether the financial statements present a "true and fair view."
• C) mandates for the new members of the auditing profession to hold a university degree in accountancy.
• D) requires that the auditor of the company to be the officer or employee of the company being audited.

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Definitions:

Tax Rate

The per-unit amount of the tax or the percentage rate at which the economic activity is taxed.

Tax Burden

The aggregate sum of taxes that individuals or businesses remit, correlated to their earnings or profits.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.

Elastic

A characteristic of a product or service indicating that a change in price leads to a significant change in the quantity demanded or supplied.