Independence Is Required

question 41

Multiple Choice

Independence is required

• A) under GAAS but not attestation standards.
• B) under both GAAS and attestation standards.
• C) under attestation standards but not GAAS.
• D) is preferred but not required under both GAAS and attestation standards.

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Definitions:

Authorization

The formal permission granted by a competent authority to carry out a specific action or process.

Principal

The amount of money originally invested or loaned, on which basis interest and returns are calculated.

Agent's Contract

A legal agreement that specifies the rights and obligations of an agent acting on behalf of another party, the principal.

Bound

Being legally or morally obligated to do something or restricted by some form of constraint.