An Important Requirement of the Auditing Standards Is That the Auditor

question 22

Multiple Choice

An important requirement of the auditing standards is that the auditor

• A)have no contact with the audit committee of the board of directors
• B)use the work of the internal audit staff
• C)assist management in the preparation of the financial statements
• D)gather sufficient appropriate evidence

Distinguish between different types of third-party beneficiaries (creditor, donee, and incidental).

Examine the conditions under which assignments are considered valid.

Assess the role of notice in the assignment process and its impact on the parties involved.

Understand the implications of specific contractual clauses (e.g., anti-assignment clauses) and legal doctrines (statute of frauds, parol evidence rule) on contract enforceability.

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Definitions:

Fair Distribution

Fair distribution is the equitable allocation of resources, benefits, and duties among all members of a society, based on principles of fairness and justice.

Loyalty

The quality of being loyal; a strong feeling of support or allegiance to someone or something.

Grave Ethical

Pertaining to serious and morally significant ethical dilemmas or issues that require careful thought and consideration.

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental norms about what is allowed or owed to people.