Which of the Following Statements Is True with Respect to the PCAOB

question 75

Multiple Choice

Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client?

• A)The auditor is not independent.
• B)The auditor is independent if he or she is able to maintain a level of professional detachment.
• C)The auditor can audit the financial statements only if the audit process does not culminate in the expression of an opinion on the financial statements.
• D)The auditor cannot audit the financial statements since a lack of integrity exists.

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Definitions:

Distributive Justice

The perceived fairness in the allocation of resources or rewards within a group or organization, impacting individuals' satisfaction and motivation.

Utilitarianism

A moral theory stating that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Employee Stress

The mental, emotional, or physical strain experienced by workers due to various workplace demands or challenges.

Dominant Values

The most influential and prioritized beliefs and norms that shape the culture and behaviors within an organization or community.