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:

Emotions

Complex psychological states that involve an experiential, physiological, and behavioral response to a personally significant matter.

Emotional States

The internal conditions that are subjectively experienced as feelings, ranging from happiness and joy to sadness and anger.

Moods

are affective states that are less specific than emotions, often longer-lasting, and not necessarily triggered by a specific event or object.

Display Rules

Cultural or social guidelines that dictate how emotions should be expressed in particular situations.