A Succinct, but Comprehensive Definition of Independence Is That an Auditor

question 30

Multiple Choice

A succinct, but comprehensive definition of independence is that an auditor ________.

• A) must be independent in fact and in appearance in order to maintain credibility
• B) must not have a direct financial interest in a client
• C) must have a license to practice as a public accountant
• D) must not take on as an audit client a company owned by a member of his or her immediate family

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Definitions:

Intelligence

The capacity for logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving.

Gatekeeper

An individual or entity that controls access to something, often information, resources, or decision-making processes.

Trade Show

A trade show is a large scale exhibition where companies from a particular industry showcase their products and services to potential customers and partners.

Creative Deviance

Defying orders by management to stop working on a creative idea.