When the Auditor Is Not Independent with Respect to a Client

question 13

Multiple Choice

When the auditor is not independent with respect to a client, what must the auditor do?

• A) Not accept an audit engagement.
• B) Include a separate paragraph in the audit report stating the lack of independence.
• C) Provide a review report.
• D) Report the non-compliance to the AICPA.

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Definitions:

Research Findings

Are the conclusions or results obtained from systematically investigating a research question or hypothesis.

Study

A detailed examination or analysis of a subject, phenomenon, or problem, typically conducted to discover new information or reach new understandings.

Literature Review

A comprehensive analysis and synthesis of existing research on a particular topic to establish a foundation for further study.

Previous Works

Refers to earlier studies, research, or publications that have addressed similar topics or themes.