Which of the Following Best Describes Why Publicly-Traded Corporations Follow

question 21

Multiple Choice

Which of the following best describes why publicly-traded corporations follow the practice of having the external auditor appointed by the board of directors or elected by the stockholders?

• A)To promote an adversarial relationship between the auditor and the corporation's management.
• B)To enhance auditor independence from the management of the corporation.
• C)To encourage a policy of rotation of the independent auditors.
• D)To give management more leverage over the auditor's decisions.

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Definitions:

Serious Relationship

A deeply committed partnership between individuals, often characterized by mutual love, respect, and plans for a future together.

Active Listening

An attentive and engaged form of listening that involves fully concentrating, understanding, responding to, and remembering what is being said.

Expressing Feelings

The process of making one's emotions known to others through words, facial expressions, body language, or other forms of communication.

Sense

A physiological capacity of organisms that provides data for perception, such as sight, sound, touch, taste, and smell.