In Determining the Types of Activities,engagements and Interactions an Auditor

question 20

Multiple Choice

In determining the types of activities,engagements and interactions an auditor should have with a client,the CPA and the audit firm must do which of the following?

• A)only assess the relationships of clients that pay audit fees that are material to their firm.
• B)assess all of their relationships with every client to ensure that independence is intact.
• C)focus on client satisfaction above all other considerations.
• D)realize that ethics are only guidelines and a matter of personal judgment.

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Definitions:

Sales Product

A good or service offered for sale by a business to customers in a market.

Misleading Advertising

Marketing or promotion that deceives consumers about the nature or quality of a product or service.

Faulty

Products or goods that have defects or are not working as intended.