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Which of the Following Statements Is True

Question 41

Multiple Choice

Which of the following statements is true?


A) Shopping for favorable audit opinions is permitted by the SEC.
B) No formal reporting of auditor switches is required by the SEC.
C) The SEC has enacted rules to help ensure financial literacy among audit committee members.
D) Since management constructs the financial statements, auditors have no legal liability to those who rely upon these reports.

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