Which of the Following Represents a Situation in Which an Auditor

question 22

Multiple Choice

Which of the following represents a situation in which an auditor is independent of the client?

• A)The auditor is paid by the client organization rather than the SEC.
• B)The auditor takes a personal loan from the president of the company.
• C)The auditor's dependent son holds 25 shares of the client's common stock.
• D)The auditor has not received payment for the previous audit services.

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Definitions:

Organization's Culture

The shared beliefs, norms, and values that shape the social and psychological environment of a business entity.

Invisible Part

Components or aspects of something that are not immediately apparent or visible but play a crucial role in its functioning or understanding.

Organization's Culture

Organization's culture encompasses the values, beliefs, behaviors, and social norms that characterize and define an organization.

Organizational Countercultures

Groups within an organization that hold and act upon values and beliefs that are fundamentally different from, or in opposition to, the prevailing organizational culture.