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:

Behaviors

Observable actions or reactions of individuals, often analyzed in psychology and organizational studies to understand human interactions.

KSA's

Abbreviation for Knowledge, Skills, and Abilities; the attributes required to perform a job and are generally demonstrated through qualifying service, experience, or education.

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.

Performance Expectations

Standards set by an organization or manager to define the desired level of performance from employees.