The Term "Safeguard," as It Used in Determining Auditor Independence,refers

question 3

Multiple Choice

The term "safeguard," as it used in determining auditor independence,refers to:

• A) Actions or other preventative measures that reduce threats to auditor independence to an acceptable level
• B) Actions or other preventative measures that eliminate all known threats to auditor independence
• C) Actions or other preventative measures that eliminate all threats, known and unknown, to auditor independence
• D) Actions taken by a client to protect confidential information from subsequent disclosure by an audit team

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Definitions:

Agency Contract

A legal agreement in which one party, the agent, agrees to act on behalf of another, the principal, typically in a business context.

Nullify

To make something legally void or ineffective, canceling its legal force.

Best Interest

A standard that guides decisions meant to favor the well-being or advantage of an individual or entity, often used in legal and financial contexts.

Agent's Duty

The responsibilities and obligations an agent owes to their principal, including acting with care, loyalty, and in good faith.