Which of the Following Would Be Least Likely to Preclude

question 34

Multiple Choice

Which of the following would be least likely to preclude an audit firm from proposing on a potential client due to independence concerns?

• A) A recently-promoted partner in the audit firm holds a financial interest in the potential client company.
• B) Someone who resigned from the audit firm three years ago is now the Chief Accounting Officer at the potential client company.
• C) The audit firm provides internal audit outsourcing and certain nonaudit services to the client company.
• D) The audit firm's pension plan holds securities of the potential client company.

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Definitions:

Financial Reports

Documents that provide an overview of a company's financial condition, including income statements, balance sheets, and cash flow statements.

Owned By

The state or condition of being legally possessed or controlled by an individual or entity.

Constructive Fraud

Deception that occurs when a person or entity gains an unfair advantage over another through dishonest or unfair practices, without the need for traditional deceit.

Intent to Deceive

The deliberate intention to mislead or trick someone, often to gain an unfair advantage or benefit.