Which of the Following Would Most Likely Be a Violation

question 70

Multiple Choice

Which of the following would most likely be a violation of the independence requirement found in the responsibilities principle under generally accepted auditing standards?

• A) An auditor on the engagement has a distant relative who is employed by a vendor that does a significant amount of business with clients.
• B) The client's chief executive officer graduated from the same university as the partner in charge of the accounting firm.
• C) An auditor on the engagement owns a financial interest in the client's stock.
• D) The client provides financial support to a number of charitable causes that also receive support from the accounting firm.

---

Definitions:

President Hayes

Rutherford B. Hayes, the 19th President of the United States, best known for ending the Reconstruction era through the Compromise of 1877.

Westward Expansion

The 19th-century movement of settlers, agriculture, and industry into the American West, often leading to the displacement of Indigenous peoples.

Transcontinental Railroad

A railway system completed in 1869 that connected the eastern and western parts of the United States, significantly reducing travel time and facilitating economic growth.