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In Business / College | 2025-07-04

Robert Moore has a home mortgage on a vacation home from DDG Bank. Which condition would allow him to work on his firm's audit of DDG?

A. No condition would allow him to work on the audit.
B. He is not the lead engagement partner or manager on the account.
C. He will charge less than 20 hours to the Bank's audit.
D. His loan is not material to his net worth.

Asked by holden2000

Answer (3)

Robert Moore cannot ethically work on his firm's audit of DDG Bank due to the conflict of interest from his mortgage with the bank. Independence is crucial in auditing, and having any financial interest in the bank undermines that. Hence, the correct answer is that no condition would allow him to work on the audit.
;

Answered by Anonymous | 2025-07-04

Robert Moore cannot ethically work on his firm's audit of DDG Bank due to the conflict of interest caused by his mortgage with the bank. No conditions, such as being non-lead or charging minimal hours, can mitigate this conflict. Independence is crucial for the integrity of the auditing process. ;

Answered by GinnyAnswer | 2025-07-04

A. No condition would allow him to work on the audit. ;

Answered by semsee45 | 2025-08-19

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