Which of the following is not a conflict of interest in accounting firms?
A) The firm provides consulting as well as rating creditworthiness.
B) Auditors may be pressured to skew their opinions so the client will stay with the firm.
C) Auditors may be reluctant to criticize advice put into place by nonaudit personnel of the firm.
D) Auditors release an overly favorable audit in order to solicit business.
A
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Concentration may not be a problem if
A. there are economies of scale. B. there are economies of scope. C. the firm does not exercise its market power. D. all of the above.
Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. The error for point D is equal to
A. -2. B. -1. C. +2. D. +4.