An Auditor Maintains No Direct Financial Interest in the Company

question 129

Multiple Choice

An auditor maintains no direct financial interest in the company he or she is auditing.The principle being followed is

• A)independence.
• B)integrity.
• C)objectivity.
• D)due care.

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Definitions:

Demand Schedule

A table or graph that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Marginal Cost

The cost of producing one additional unit of a product, highlighting the concept of increasing or decreasing costs with production scale.

Typeset

The arrangement and composition of text material by means of types, including digital forms for printing or display.

Zero Marginal Cost

The situation where producing an additional unit of a good or service does not increase the total cost of production.