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:

Scolex

The head or anterior end of a tapeworm, equipped with hooks and/or suckers for attaching to the intestinal wall of the host.

Tapeworm

A parasitic flatworm that lives in the digestive tracts of vertebrates, absorbing nutrients from the host's diet.

Pseudocoelom

Fluid-filled cavity between the gut and body wall; partially lined by tissue derived from mesoderm.

Tubular Digestive System

A type of digestive system in which the digestive tract forms a continuous tube from mouth to anus, allowing for sequential processing of food.