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:

Job Breadth

The range and variety of tasks, duties, and responsibilities that a job encompasses.

Job Sharing

Job sharing is where one full-time job is split between two or more persons who divide the work according to agreed-upon hours.

Job Rotation

Job rotation increases task variety by periodically shifting workers among jobs involving different tasks.

Task Variety

The degree to which a job involves different activities requiring various skills and talents.