In an Effort to Harmonize International Auditing Standards on a Regional

question 39

Multiple Choice

In an effort to harmonize international auditing standards on a regional level, the European Union has issued directives pertaining to this end. Its Eighth Directive caused the United Kingdom to change the country's long-held standard for individuals wishing to be auditors. Which of the following is a new requirement for auditors in the UK?

• A) Auditors must be members of a recognized professional association, such as the ICAEW.
• B) New entrants to the auditing profession must hold a university degree in accountancy.
• C) Auditors may now be a citizen of any country in the European Union rather than just the UK.
• D) New members of the auditing profession must have a university degree.

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Definitions:

Authorized

Having official permission or approval to do something.

Drawer

In a transaction involving a check or draft, the drawer is the party that writes and signs the check, ordering the bank to pay a specified sum to the payee.

Depositor's Account

An account maintained at a bank or other financial institution where funds are held in the depositor's name and can include both checking and savings accounts.

Stop-Payment Order

A request made to a bank to cancel a check or payment that has not been processed yet.