On July 1, 2015, the SEC charged Deloitte & Touche with violating auditor independence because:
A) It provided certain nonaudit services to an audit client
B) It provided audit services to a client when engaged in a business relationship with management
C) Its consulting affiliate kept a business relationship with a trustee serving on the board of three funds Deloitte audited
D) Its consulting affiliate owned stock of a firm Deloitte audited

Question

Quizplus · Accepted Answer

Deloitte's consulting affiliate maintained a business relationship with a trustee serving on the board of three funds that Deloitte audited, which violated auditor independence. This relationship created a direct financial interest in the audit client and compromised the auditor's objectivity and impartiality.

On July 1, 2015, the SEC Charged Deloitte & Touche