Auditing Firms Often Face Problems of Conflict of Interest and Resource

question 53

Multiple Choice

Auditing firms often face problems of conflict of interest and resource dependency because __________.

• A) auditing firms do what is called due diligence
• B) auditing firms treat all potential clients simply on the basis of merit
• C) auditors are affected by absolute, not relative, power
• D) auditors are paid by the very companies whose books they are required to validate