If the AICPA Code of Professional Conduct Does not Specifically

question 48

Multiple Choice

If the AICPA Code of Professional Conduct does not specifically address a threat to auditor independence,the auditor should:

• A)Conclude that the threat is not significant unless proven so.
• B)Conclude that the threat results in a lack of independence unless it can be shown that no impairment of independence occurs.
• C)Consider the threat from the perspective of a reasonable and informed third party who has knowledge of all the relevant information.
• D)Consult the Statements on Auditing Standards for guidance.

---

Definitions:

Subjective Probabilities

Estimates of the likelihood of events based on personal judgment or experience, rather than on objective data or statistical analysis.

Past Experience

Refers to the knowledge, skills, and achievements a person has accumulated from previous job roles, education, or life situations.

Certainty

The state of being completely confident or having no doubt about something.

Framing Error

A cognitive bias where information is presented or perceived in a way that influences judgment or decision-making, often leading to misinterpretation.