ABC firm are the auditors of XYZ Company.The partner responsible for the audit has recently spent a week working with XYZ as a paid consultant on their internal control systems.The ethical principle that has been breached is:
A)auditor competence.
B)auditor rotation.
C)auditor independence.
D)auditor appointment.

Question

Quizplus · Accepted Answer

The ethical principle breached is auditor independence, as the auditor's role as a consultant creates a conflict of interest, compromising their objectivity and impartiality.

ABC Firm Are the Auditors of XYZ Company