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:

Perquisites

Special nonmonetary benefits given to executives; often referred to as perks

Country Club Membership

Affiliation with a private club offering recreational sports and social activities, often including access to golf courses and dining facilities.

Former CEO

An individual who previously held the chief executive officer position in a company, responsible for strategic decision-making and overall management.

Lump-sum Merit Pay

A one-time payment awarded to an employee for exceptional performance, rather than an ongoing salary increase.