Why Must an Auditor Act Independently of Any Interest of the Company

question 64

Multiple Choice

Why must an auditor act independently of any interest of the company that has retained him or her to perform the audit?

• A) The auditor must maintain client privilege.
• B) The auditor fulfills a public function.
• C) The auditor must maintain client confidentiality.
• D) The auditor has a duty of care.

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Definitions:

Unethical Behavior

Actions that are considered morally wrong within the professional or corporate realm.

Involuntary Separation

Termination of employment initiated by the employer for reasons other than the employee's personal choice, such as layoffs or downsizing.

Voluntary Turnover

The act of an employee leaving the organization by choice rather than being fired or laid off.

360-Degree Performance Review

A feedback process where employees receive confidential, anonymous feedback from those who work around them.