In the PeopleSoft case, the auditors violated what aspect of independence?
A) The auditor borrowed money from the client
B) The auditor was exposed to an intimidation threat by the client
C) The auditor was involved in a business relationship with the client
D) The auditor served in a management decision making position with the client

Question

Quizplus · Accepted Answer

The auditors were involved in a business relationship with the client by purchasing consulting services from them. This violated the independence requirement as auditors are not allowed to have any financial relationships with their clients that could compromise their objectivity and impartiality in conducting the audit.

In the PeopleSoft Case, the Auditors Violated What Aspect of Independence