What Happens If an Independence Threat Appears to Be Insurmountable

question 133

Multiple Choice

What happens if an independence threat appears to be insurmountable?

• A)An audit firm should decline the offer to be the auditor of a prospective client or resign from the audit of an existing client.
• B)The audit firm should contact the State Board of Accountancy so they can make a press release to discourage other accountants from taking the engagement.
• C)The audit firm should make certain that safeguards are put in place to limit or remove those threats.
• D)The audit firm should take the engagement and continue to make certain that safeguards are put in place to limit or remove those threats.

---

Definitions:

Civil Disputes

Conflicts between individuals, corporations, or government bodies resolved through the civil justice system, rather than criminal proceedings.

Not Guilty

A legal verdict indicating that the prosecution has not proved beyond a reasonable doubt that the accused committed the crime.

Criminal Matter

A legal case or issue involving actions that are against the law and subject to prosecution and punishment.

Sued Civilly

The process of taking legal action against an individual or entity in civil court, usually for compensation for damages or injuries.