1-A conflict of interest exists when:

A professional service or relationship creates a situation that might impair completion of the audit

A professional service or relationship creates a situation that might impair objective judgment

Professional skepticism fails to meet objective standards

All of the above

2-Common judgment traps include:

Group think, judgment triggers, and a rush to solve problems

Systems 1 thinking, cognitive dissonance, a rush to solve problems

Reacting to pressures, a rush to solve problems, and Systems 1 thinking

Group think, judgment triggers, and reacting to pressures

3-The Commercialism versus Professionalism case raises issues about:

The future of the accounting profession

Low-ball bidding for audit services

Pressures to compromise ethical values that exist in alternative practice structures

Opinion shopping

4-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

5-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