The recommendation of the appointment and review of external auditors by the audit committee is an example of:
A)safeguards reducing the risk of conflict of interest created by the profession, legislation, or regulation.
B)safeguards reducing the risk of conflict of interest between an auditor and management.
C)safeguards reducing the risk of conflict of interest within a professional accounting firm's own systems and procedures.
D)All of the above
E)a and c only

Question

Quizplus · Accepted Answer

The audit committee's role in recommending and reviewing external auditors helps ensure the auditors' independence from management, thus reducing the risk of conflict of interest between an auditor and management.

The Recommendation of the Appointment and Review of External Auditors