The Fourth Directive of the European Commission

question 13

Multiple Choice

The Fourth Directive of the European Commission:

• A) aims at harmonizing the educational and training prerequisites necessary to become a statutory auditor.
• B) requires that the auditor's report include whether the financial statements present a "true and fair view."
• C) mandates for the new members of the auditing profession to hold a university degree in accountancy.
• D) requires that the auditor of the company to be the officer or employee of the company being audited.

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Definitions:

Emotional Harm

Emotional harm refers to psychological damage caused by extreme stress, trauma, or distressing experiences, impacting an individual's mental health and well-being.

Negligent Misrepresentation

A false statement made carelessly that is reasonably relied upon and causes harm or damage.

Economic Harm

Damage or detriment to one's financial condition or prospects.

Physical Injury

Bodily harm or damage that a person suffers due to an accident, violence, or other incident.