When Auditing a Public Company, Which of the Following Impairs

question 29

Multiple Choice

When auditing a public company, which of the following impairs an auditor's independence?

• A)Offering audit services as well as preparing the tax return for the same client.
• B)The auditor's spouse works in the assembly line of an audit client.
• C)Lack of fee disclosure in the client's annual report.
• D)The auditor has been a partner on the engagement for ten years.

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Definitions:

Partnership

A legitimate business framework where two or more partners collaborate in managing the business and share its profits.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment and does not participate in day-to-day management.

General Partner

refers to a member of a partnership who has unlimited liability and is active in the management of the partnership.

Certificate

An official document attesting to a certain fact, such as the completion of an educational course or the ownership of a financial security.