An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?

Related Mcqs:

How long is the auditor’s term of office?

A. Until the audit is complete B. Until the financial statements are complete C. Until the next AGM (Annual General Meeting) D. Until the directors remove them...

Floating assets are valued at____________?

A. cost B. Market price C. Cost or market price whichever is lower D. Cost less depreciation...

Which of the following is not an advantage of the preparation of working paper?

A. To provide a basis for review of audit work B. To provide a basis for subsequent audits C. To ensure audit work is being carried out as per programme D. To provide a guide for advising another client on similar issues...

Which of the following statements is most closely associated with analytical procedure applied at substantive stage?

A. It helps to study relationship among balance sheet accounts B. It helps to discover material misstatements in the financial statements C. It helps to identify possible oversights D. It helps to accumulate evidence supporting the validity of a specific account balance...

The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:­_____________?

A. identify cases of unrecorded revenue B. ensure proper disclosure in the balance sheet C. recompute accrued income on the data of balance sheet D. Any of these...