Which of the following represents a situation in which an auditor is independent of its client?
A)The auditor is paid by the client organization rather than the SEC.
B)The auditor takes a personal loan from the president of the company.
C)The auditor's dependent son holds 25 shares of the client's common stock.
D)The auditor has not received payment for the previous audit services.

Question

Quizplus · Accepted Answer

An auditor is considered independent if they are free from any financial interests or relationships that could impair their objectivity. Being paid by the client is standard practice and does not inherently impair independence.

Which of the Following Represents a Situation in Which an Auditor