Which of the Following Statements Regarding Auditors Is FALSE

question 39

Multiple Choice

Which of the following statements regarding auditors is FALSE?

• A)Most auditors have a longstanding relationship with their audit clients;this extended relationship and the auditors' desire to keep the lucrative auditing fees makes auditors less willing to challenge management.
• B)Most accounting firms have developed large and extremely profitable consulting divisions.Obviously,if an audit team refuses to accommodate a request by a client's management,that client will be less likely to choose the accounting firm's consulting division for its next consulting contract.
• C)Auditing firms are supposed to ensure that a company's financial statements accurately reflect the financial state of the firm.
• D)In the post Sarbanes-Oxley world,accounting firms are no longer allowed to offer both audit and non-audit services to the same firm.

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Definitions:

Experiential Learning

A learning methodology where individuals learn by going through an experience first-hand, reflecting upon it, and using those insights for real-world application.

Job Rotations

A method in human resource management where employees are moved between various jobs at the same or similar levels to expose them to different experiences and develop a wider range of skills.

Skill Application

The use of learned abilities and knowledge in practical situations to achieve specific tasks or solve problems.

Transferring Learned Principles

The application of skills or knowledge gained in one context to different, but related situations in the workplace or other areas of life.