As an external auditor is paid a fee by a client company,he or she
A)is absolutely independent and may conduct an audit.
B)may still be sufficiently independent to conduct an audit.
C)is never considered to be independent.
D)must receive approval from the relevant provincial securities commission before conducting an audit.

Question

Quizplus · Accepted Answer

While an external auditor who is paid a fee by a client company may not be considered absolutely independent, they may still be sufficiently independent to conduct an audit. In order to ensure their independence, auditors must follow a set of professional standards and ethical guidelines, and may need to disclose any potential conflicts of interest. The approval of provincial securities commissions is not specifically required for auditors to conduct an audit.

As an External Auditor Is Paid a Fee by a Client