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AICPA AUD (AUD) Practice Tests & Test Prep by Exam Edge - Review



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AICPA Auditing and Attestation - Reviews


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Based on 160 reviews

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See why our users from 154 countries love us for their exam prep! Including 160 reviews for the AICPA AUD exam.

Exam Edge is an industry leader in online test prep. We work with institutional partners to offer a wide array of practice tests that will help you prepare for your big exam. No matter how niche your field of interest might be, we're here to help you prepare for test day.

   Excellent -- Based on 160 reviews

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AICPA Auditing and Attestation - Test Reviews Sample Questions

The audit partner for the job and the audit partner who reviews the audit can do the audit services for only__________ consecutive years.

Correct Answer:
5
the correct answer to the question regarding the tenure limit for audit partners is 5 consecutive years. this rule is designed to maintain audit quality and independence, which are crucial in the field of auditing. *p2* the regulation that restricts an audit partner's tenure to a maximum of five consecutive years aims to prevent the development of overly close relationships between the audit partners and the client. such relationships could potentially lead to conflicts of interest or biases, thereby compromising the objectivity of the audit. after serving for five years, the audit partner must rotate off the client engagement, and another partner must take over the role. *p3* additionally, there are related regulations that strengthen the independence of audit firms. for instance, if a public company hires a former employee of its audit firm as its ceo, cfo, or chief accounting officer (cao), the audit firm is barred from auditing that company for a period following the employment shift. this rule helps prevent any undue influence that former employees of the audit firm might have over the auditing process due to their prior relationships with their former colleagues at the firm. *p4* these regulations are part of broader efforts to ensure the integrity and reliability of financial reporting, which are fundamental to the functioning of the capital markets. by enforcing such rules, regulatory bodies aim to protect investors and maintain confidence in the financial statements of publicly traded companies.