An Audit Independence Issue Might Be Raised by the Auditor's

question 69

Multiple Choice

An audit independence issue might be raised by the auditor's participation in consulting services engagements.Which of the following statements is most consistent with the profession's attitude toward this issue?

• A)Information obtained as a result of a consulting services engagement is confidential to that specific engagement and should not influence performance of the attest function.
• B)The decision as to loss of independence must be made by the client based on the facts of the particular case.
• C)The auditor should not make management decisions for an audit client.
• D)The auditor who is asked to review management decisions,is also competent to make these decisions and can do so without loss of independence.

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Definitions:

Ellipse

A curve on a plane that surrounds two focal points such that the sum of the distances to the two focal points is constant for every point on the curve.

Major Axis

The longest diameter of an ellipse, running through its center and both foci.

Vertices

Vertices are the corner points where two or more lines, edges, or curves meet in a geometric shape or figure.

Co-vertices

In an ellipse, the pair of points on the minor axis that are equidistant from the center.