The SEC's Rules with Respect to Services Provided by Auditors

question 21

Essay

The SEC's rules with respect to services provided by auditors are predicated on three basic principles of auditor objectivity and independence. What are the three basic principles?

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Definitions:

Fixed Supply

A situation where the quantity of a good or resource available does not change in response to its price.

Fish

Aquatic animals that are typically harvested either from the wild (fishing) or from farms (aquaculture) for food, recreational, or commercial purposes.

Open Ocean

The vast, deep, and relatively unexplored parts of the sea, far from land and typically beyond national jurisdiction.

Property Rights

The legal rights to use, transfer, or sell property, whether tangible or intangible, recognized and protected by law.