Which of the Following Is True of a Conceptual Approach

question 48

Multiple Choice

Which of the following is true of a conceptual approach to auditor independence?

• A) Its applicability goes beyond any specific situation and mandates a proactive approach based on clearly articulated principles.
• B) It prohibits certain nonaudit services such as bookkeeping, valuations, actuarial, and internal audit outsourcing.
• C) It requires audit committee prior approval for any service provided by the auditors.
• D) It prevents the use of legalistic devices to avoid compliance.

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Definitions:

Drawn

Refers to the process of extracting or taking something from a particular source, such as money from an account.

Liable

Legally responsible or obligated, often in the context of paying damages or facing other legal consequences.

Preprinted Promissory Note

A legally binding document that acknowledges debt and promises repayment, which comes in a standardized form.

Payable

Refers to an amount of money that is owed and should be paid.