In Which of the Following Instances Would the Independence of the Auditor

question 12

Multiple Choice

In which of the following instances would the independence of the auditor most likely not be considered to be impaired?

• A)He or she has been retained as the auditor of a charitable entity in which the spouse of the auditor serves as treasurer.
• B)He or she has been retained as the auditor of a company in which the auditor's investment club owns a 10 per cent interest.
• C)He or she has been retained as the auditor of a large manufacturing company that has loaned the auditor $6 000.
• D)He or she has been retained as the auditor of a company from which the auditor purchased his or her latest motor vehicle at normal list price.

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Definitions:

Project Team

A group of individuals assembled to work collaboratively on a specific project, pooling their skills and resources to achieve shared objectives.

Corporate Policy

Guidelines and rules set by a company to dictate behavior and decision-making processes within the corporate structure.

Work Group

A collection of individuals who come together to achieve a specific goal or task, often characterized by less structured interactions than in formal teams.

Corporate Allegiance

The loyalty of an employee towards their employer or the organization for which they work.