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Which of the following is one of the most important drivers of audit quality in cases where an auditor may feel some pressure to acquiesce to management's demands to not require that misstatements be corrected in order to preserve a harmonious working relationship?

a. Firm culture.

b. Ethics training.

c. Annual income of the CPA firm.

d. PCAOB guidance.

User Frieder
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1 Answer

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Final answer:

Firm culture is one of the most crucial factors affecting audit quality, enabling auditors to maintain independence and professionalism even when facing pressure from management to overlook misstatements.

Step-by-step explanation:

One of the most important drivers of audit quality when an auditor may feel pressured to acquiesce to management's demands is a. Firm culture. A robust firm culture that emphasizes the importance of independence, objectivity, and professional skepticism can empower auditors to stand firm on their audit opinions and insist on the correction of misstatements, despite any pressures, ensuring the integrity of the financial reporting process.

In contrast, factors like the annual income of the CPA firm, while relevant to the firm's operations, do not directly influence the individual auditor's ability to resist such pressures. Furthermore, while ethics training and PCAOB guidance are valuable resources, they may not have as immediate and influential an impact as the culture within which an auditor works.

User Dean P
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