A Succinct,but Comprehensive Definition of Independence Is That an Auditor

question 42

Multiple Choice

A succinct,but comprehensive definition of independence is that an auditor ________.

• A)must be independent in fact and in appearance in order to maintain credibility
• B)must not have a direct financial interest or material indirect interest in a client
• C)must have a license to practice as a public accountant
• D)must not take on as an audit client a company owned by a member of his or her immediate family

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Definitions:

Survival of the Fittest

A concept derived from Darwinian evolutionary theory, it refers to the mechanism of natural selection where individuals better adapted to their environment tend to survive and produce more offspring.

Evolution

A process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Progressive Change

Gradual transformation or development over time in a specific, usually forward or beneficial, direction.

Phrenology

A now-discredited theory that suggested the bumps on the skull could predict mental traits or character.