An Example of a Safeguard to Independence Created by Accounting

question 69

Multiple Choice

An example of a safeguard to independence created by accounting firms is

• A) the establishment of a code of ethics.
• B) legislation that requires that an auditor be independent.
• C) the existence of client acceptance and continuation procedures.
• D) the establishment of an audit committee.

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Definitions:

Adjustments

Changes made to accounts to record actual events that have occurred but haven't yet been recorded by the end of the accounting period.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a certain period of time.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balance of each after adjustments have been made for journal entries, typically used in the preparation of financial statements.

Debit Column Total

Represents the total sum of all debit entries within a specific period in accounting, which are recorded on the left-hand side of the ledger.