According to the Profession's Ethical Standards, an Auditor Would Be

question 90

Multiple Choice

According to the profession's ethical standards, an auditor would be considered independent in which one of the following instances?

• A) The auditor is also a solicitor advising the client.
• B) The client owes the auditor fees for the last two annual audits.
• C) An employee of the audit firm acts as the honorary treasurer for a charity that is an audit client.
• D) The auditor's main bank account is held at a client financial institution.

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Definitions:

Beginning Inventory

The valuation of goods on hand for sale or use in production at the start of an accounting period.