Which of the Following Is True

question 118

Multiple Choice

Which of the following is true?

• A) Members of an audit engagement team cannot speak with audit client officers about matters outside the scope of the audit while the audit engagement is in progress.
• B) Audit team members who leave the public accounting firm for employment with audit clients can provide audit efficiencies (next year) because they are very familiar with the firm's audit plans.
• C) Audit team partners who leave the public accounting firm for employment with audit clients can retain variable annuity retirement accounts established in the person's former firm retirement plan.
• D) The public accounting firm must discuss with the audit client's board or its audit committee the independence implications of the client's having hired the audit engagement team manager as its financial vice president.

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Definitions:

Implicit Memory

A type of long-term memory that influences thoughts and behaviors unconsciously, without conscious awareness.

Proactive Interference

A phenomenon where old memories hinder the recall of new information.

Recognition

The cognitive process of identifying a familiar stimulus from among a variety of unfamiliar ones.

Recall

The process of retrieving information stored in the memory without the aid of cues.