An Auditor Is About to Commence a Recurring Annual Audit

question 20

Multiple Choice

An auditor is about to commence a recurring annual audit engagement. The continuing auditor's independence would ordinarily be considered to be impaired if the prior year's audit fee:

• A)was unusually large.
• B)has not been paid and will not be paid for at least twelve months.
• C)has not been paid and the client has filed a voluntary petition for bankruptcy.
• D)was renegotiated during the prior year audit based on the need for expanded testing.

---

Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, often implying a long-term engagement or obligation.

Caring

Making another’s needs as important as one’s own.

Various Forms

Refers to the different shapes, types, or variations that an object, concept, or entity can take.

Gay or Lesbian Relationships

Romantic and sexual relationships between individuals of the same sex, either men (gay) or women (lesbian).