To Emphasize Auditor Independence from Management,publicly Traded Corporations Are Required

question 7

Multiple Choice

To emphasize auditor independence from management,publicly traded corporations are required to

• A) Appoint a partner of the CPA firm conducting the examination to the corporation's audit committee.
• B) Establish a policy of discouraging social contact between employees of the corporation and the independent auditors.
• C) Request that a representative of the independent auditor be on hand at the annual stockholders' meeting.
• D) Have the independent auditor report to an audit committee of independent members of the board of directors.

---

Definitions:

Value Judgments

Assessments based on personal or societal preferences, beliefs, or ethics, as opposed to objective measurements.

Policy Alternatives

Various strategies or plans of action that policy-makers can consider and potentially implement to address specific public issues.

Scientific Study

A systematic and objective investigation conducted to acquire knowledge and understand natural phenomena through observation and experimentation.

Positive Economic Statement

An objective statement based on fact that can be tested and validated.