Some independence rules apply to all assurance engagements,while others apply only to a listed entity.For the purposes of assessing the independence rules,a listed entity is defined as
A)an organization with share capital exceeding $10 million that has public accountability.
B)an entity whose debt or shares are listed on a stock exchange,with market capitalization and total assets greater than $10 million.
C)any organization that has shares or debt listed on a stock exchange.
D)an organization that has shares or debt listed on a stock exchange,and that has redeemed shares.

Question

Quizplus · Accepted Answer

The definition of a listed entity includes entities whose debt or shares are listed on a stock exchange and meet certain size criteria, which includes market capitalization and total assets greater than $10 million. This definition is specific to the assessment of independence rules and applies only to certain assurance engagements. Choice A is incorrect as it only considers share capital and public accountability. Choice C is too broad as it includes any organization with shares or debt listed, regardless of size or market activity. Choice D is incorrect as the redemption of shares is not a relevant factor in determining a listed entity for the purposes of independence rules.

Some Independence Rules Apply to All Assurance Engagements,while Others Apply