Auditors of Public Companies Have Additional Requirements That Extend Beyond

question 43

Multiple Choice

Auditors of public companies have additional requirements that extend beyond those of the AICPA.Which of the following is not one of those additional requirements?

• A)Preapproval of audit services and permissible nonaudit services by the client's audit committee.
• B)Disclosure by the client of all fees paid to its auditors for audit,audit-related,tax,and other services.
• C)Changing audit firms every seven years with a two-year cooling off period.
• D)Rotating lead audit partners every five years with a five-year cooling off period.

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Definitions:

Zimbardo

Philip Zimbardo, a psychologist known for his research on social psychology, including the Stanford prison experiment.

Milgram

Refers to Stanley Milgram, a psychologist known for his research on obedience, demonstrating how people are willing to follow authority figures' orders even to the point of harming others.

Mental Processes

The internal, covert activities that occur in the mind, such as thinking, remembering, and reasoning.

Scientific Study

The systematic pursuit of knowledge involving the observation, identification, description, experimental investigation, and theoretical explanation of phenomena.