Which of the Following Statements Regarding Auditors Is False

question 26

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:

Rogers's Theory

A humanistic approach to psychology focusing on an individual's innate potential for self-actualization.

Actualizing Tendency

A concept in humanistic psychology referring to the innate drive within living organisms to fulfill their potential, including growth, development, and creativity.

Fully Functioning

A state in which an individual operates at their optimum level, experiencing personal growth, fulfillment, and wellness.

Personal Causation Hypothesis

A theory suggesting that individuals perceive their actions as being the result of their own choice and thus feel responsible for the outcomes.