Which of the Following Is a Correct Statement Regarding the Nature

question 42

Multiple Choice

Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm performing an initial audit of an issuer and the issuer's audit committee?

• A)Prior to accepting the engagement, the firm must orally affirm its independence to the audit committee with all members present.
• B)The firm must address all independence impairment issues on the date of the audit opinion.
• C)Communications related to independence may occur in any form prior to issuance of the financial statements.
• D)Prior to accepting the engagement, the firm should describe in writing all relationships that, as of the date of the communication, may reasonably be thought to bear on independence.

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Definitions:

Test-Retest Reliability

The degree to which a test yields the same results when it is given more than once to the same person. Test-retest reliability can be evaluated by correlating a person’s score on a given test with the same person’s score on the same test taken at a later time. The higher the correlation between the two scores (as expressed in terms of a correlation coefficient) the more reliable it is.

Psychological Test

A standardized instrument or systematic procedure designed to evaluate a specific aspect of an individual's mental health, intelligence, or aptitude.

Personality Type

A classification of individuals based on their characteristic patterns of thoughts, feelings, and behaviors.