One of the Components That a Nation Must Have to Effectively

question 37

Multiple Choice

One of the components that a nation must have to effectively apply international standards is quality auditing. Which of the following statements about auditing is true?

• A)Audit quality is consistently high around the world due to the implementation of International Auditing Standards.
• B)Most audits around the world are conducted by the Big Four, which ensures consistency.
• C)Audit quality is consistent around the world as smaller countries import well-educated auditors to ensure expertise.
• D)Audit quality is inconsistent around the world.

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Definitions:

Shortage

A situation in which demand for a good or service exceeds the supply available at a specific price. This can lead to long lines, increased prices, or both.

Demand Schedule

A table that lists the quantity of a good a consumer will purchase at various prices in a market.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Competitive Market

A market structure characterized by many sellers and buyers, free entry and exit, and products that are similar but differentiated.