In the Course of Performing an Audit,an Auditor Begins Dating

question 57

Multiple Choice

In the course of performing an audit,an auditor begins dating the CFO of the auditee.What kind of threat to independence might arise?

• A)Self-review threat.
• B)Self-interest threat.
• C)Familiarity threat.
• D)Intimidation threat.

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Definitions:

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not affect future economic decisions.

Remodeling

The process of improving or updating the structure, layout, or appearance of an existing building or space.

Marginal Costs

The expense incurred from the manufacture of an extra single product or service unit.

Total Cost

All expenditures related to the manufacture of goods or provision of services, integrating both unchanging and dynamic costs.