When might an auditor choose arbitration over a trial:
A) When the cost of a trial is prohibitive.
B) To avoid possible damage to its reputation.
C) Both a and b.
D) None of the above.

Question

Quizplus · Accepted Answer

An auditor may choose arbitration over a trial when the cost of a trial is prohibitive, and also to avoid possible damage to its reputation. Arbitration is often less expensive and more expedient than a trial, making it a more attractive option for resolving disputes. Additionally, arbitration proceedings are typically confidential, which may be appealing to auditors who wish to avoid negative publicity or damage to their reputation.

When Might an Auditor Choose Arbitration Over a Trial