The SEC's position on independence can best be characterized as:
A) Permitting certain financial interests with the client
B) Prohibiting auditors from providing tax advice to audit clients
C) Proscribing certain business relationships with the client
D) Banning the provision of all nonaudit services to audit clients

Question

Quizplus · Accepted Answer

The SEC's position on independence proscribes certain business relationships with the client. This includes prohibiting auditors from engaging in relationships that create conflicts of interest, such as having a financial interest in the audit client or having a close familial relationship with senior management. However, the SEC does allow for certain non-audit services, so long as they do not impair the auditor's independence.

The SEC's Position on Independence Can Best Be Characterized As