Each of the Following Is a Safeguard That Helps to Mitigate

question 65

Multiple Choice

Each of the following is a safeguard that helps to mitigate threats to independence except for:

• A) Safeguards created by the profession, legislation, or regulation
• B) Safeguards implemented by the attest client, such as a tone at the top
• C) Safeguards developed to ensure independence when performing nonattest services
• D) Safeguards implemented by the firm, including policies and procedures to implement regulatory requirements

---

Definitions:

Interest Rate Futures

Financial derivatives contracts that lock in the future delivery of an asset with an interest-bearing instrument at a specified price.

Eurodollars

Deposits held in banks outside the US but denominated in US Dollars, not under jurisdiction of the Federal Reserve.

Actively Traded

Describes securities or assets that are frequently bought and sold, often indicating high liquidity and market interest.

Reversing Trade

The process of undoing or closing out a trading position, often used to correct an incorrect trade or take profits.