76.

 Among immediate family members, whose ownership of client’s stock is not considered the
same as the covered member’s ownership? 
A. Spouse.
B. Dependent children.
C. Non-dependent children.
D. All are considered part of the covered members immediate family.

77. Among close relatives of the covered member, e.g., brothers, sisters, mother, father, and
cousins, when is ownership of the client’s stock by them considered the same as ownership by
the covered member? 
A. When the relative holds a key financial position with the client.
B. When it is an immaterial financial interest in the client with covered member’s knowledge.
C. When it is a material financial interest in the client without the covered member’s knowledge.
D. In all of the above scenarios.

78. What does utilitarian theory hold? 

A. There is a decision that exists that is optimal for all people.
B. What is ethical is the action that achieves the least bad for the greatest number of people.
C. What is ethical is the action that achieves the greatest good for the greatest number of people.
D. What is ethical is the action that achieves the greatest good for all people.

79. Which of the following is a cause of action against the auditor for breach of contract? 
A. Violating client confidentiality.
B. Providing the audit report on time.
C. Failing to discover an immaterial error or employee fraud.
D. Withdrawing from an audit engagement with justification.

80. Which of following is not required by Rule 201?  

A. Professional competency.
B. Integrity and objectivity.
C. Planning and supervision.
D. Gathering sufficient relevant data.

 
81. The importance of independence

Why is "independence" referred to as the cornerstone of auditing?