A successor auditor may perform which of the following for a new audit client?

A) Speak to local attorneys, banks and other businesses regarding the company's reputation Speak to the predecessor auditors about disagreements they had with management

Yes Yes

B) Speak to local attorneys, banks and other businesses regarding the company's reputation Speak to the predecessor auditors about disagreements they had with management

No No

C) Speak to local attorneys, banks and other businesses regarding the company's reputation Speak to the predecessor auditors about disagreements they had with management

Yes No

D) Speak to local attorneys, banks and other businesses regarding the company's reputation Speak to the predecessor auditors about disagreements they had with management

No Yes

Ans: A) Speak to local attorneys, banks and other businesses regarding the company's reputation Speak to the predecessor auditors about disagreements they had with management

Business

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Some parent companies rely on internally designed performance measures (rather than GAAP net income) to evaluate subsidiary management or make allocation decisions.

a. true b. false

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In 2004, the United Nations added a tenth principle to the Global Compact requiring:

A. the effective abolition of child labor. B. participant companies to adopt anti-corruption policies and controls. C. respect for the protection of internationally proclaimed human rights. D. the elimination of discrimination in employment and occupation.

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