An Auditor Is About to Commence a Recurring Annual Audit

question 15

Multiple Choice

An auditor is about to commence a recurring annual audit engagement. The continuing auditor's independence would ordinarily be considered to be impaired if the prior year's audit fee

• A) Was unusually large.
• B) Has not been paid and will not be paid for at least twelve months.
• C) Has not been paid and the client has filed a voluntary petition for bankruptcy.
• D) Was renegotiated during the prior year audit based on the need for expanded testing.

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Definitions:

Play School

Play school, also known as preschool, is an educational establishment offering early childhood education to children prior to compulsory education at primary school.

Weekdays

The days of the week that are typically dedicated to work or school activities, usually from Monday to Friday, excluding the weekend.

Nature-Nurture Controversy

The debate over the relative contributions of genetics (nature) and environment (nurture) to the development of individual characteristics and behaviors.

Heredity

The passing of traits from parents to offspring through genes.