Business Ethic Subject

The statement made by Lynn Turner, former SEC chief accountant, "Are the auditors going to serve management, or are they going to serve the best interests of the investing public?", refers to concerns about:

Low-balling audit bids

Conflict between professionalism and commercialism

Fraud in financial statements

Opinion shopping

22-The SEC's position on independence can best be characterized as:

Banning the provision of all nonaudit services to audit clients

Proscribing certain business relationships with the client

Permitting certain financial interests with the client

Prohibiting auditors from providing tax advice to audit clients

23-PwC's actions in their audits of Avon and Pinnacle were similar in that the SEC alleged that the firm:

Was influenced in their opinions by the size of nonaudit services

Owned stock in both clients

Borrowed money from both clients

Served on the board of directors of both clients