According to the Profession's Ethical Standards,an Auditor Would Be Considered

question 5

Multiple Choice

According to the profession's ethical standards,an auditor would be considered independent in which of the following instances?

• A)The auditor is the officially appointed stock transfer agent of a client.
• B)The auditor's checking account that is fully insured by a federal agency is held at a client financial institution.
• C)The client owes the auditor fees for more than two years prior to the issuance of the audit report.
• D)The client is the only tenant in a commercial building owned by the auditor.

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Definitions:

Return On Assets

A financial metric used to gauge how efficiently a company uses its assets to generate profit.

Common Equity

The amount of ownership interest in a corporation, represented by common stock, that is available to shareholders after debts and liabilities have been settled.

Debt Financing

The raising of capital through the sale of bonds, bills, or notes to individual and/or institutional investors.

Maturity Structure

The classification of a portfolio or entity's liabilities based on the time frame until those obligations mature or are due for payment.