Some Commentator Advocate in Favor of Audit Firm Rotation

question 29

Multiple Choice

Some commentator advocate in favor of audit firm rotation:

• A) To minimize the management participation threat
• B) To give new CPA firms the opportunity to expand and create employment opportunities for inexperienced accountants to gain valuable professional skills
• C) As a safeguard against the familiarity threat
• D) As a safeguard against auditor fee gouging

---

Definitions:

Outstanding

Exceptionally good or noticeable in comparison to others; distinguished beyond the norm.

E-Leadership

A form of leadership practiced in a context where work is mediated by information technology.

Micromanaged

A management style where a manager closely observes or controls the work of their subordinates.

Mediated

In the context of communication or disputes, refers to the involvement of a neutral third party to facilitate discussions and help reach an agreement.