Which of the following is not an example of auditors' strong bargaining position with management?
A)The high financial and social costs reflect both public interest and business necessity
B)The public value of the audit cannot be too highly emphasized
C)Audit firms can be use the audit process as a "loss leader."
D)The negative impact of failed audits is apparent to observers of the profession,loss of public confidence,and an investors' trust

Question

Quizplus · Accepted Answer

The option C states that audit firms can use the audit process as a "loss leader," which means the audit firm may sell a service or product at a loss to attract new customers. This does not demonstrate the auditors' strong bargaining position with management but rather highlights their willingness to take a financial loss. Options A, B, and D highlight the importance of auditors in maintaining public trust in financial reporting and their ability to detect and report on issues effectively, indicating their strong bargaining position with management.

Which of the Following Is Not an Example of Auditors