In assessing independence, an audit firm may do which of the following?
A) decline the engagement due to a lack of independence.
B) circulate the name of a prospective client to staff to identify any relationships inconsistent with independence.
C) complete a professional independence questionnaire.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are actions an audit firm may take to assess its independence in relation to a prospective client. Declining an engagement due to a lack of independence, circulating the name of a prospective client to identify any conflicting relationships, and completing a professional independence questionnaire are all measures to ensure the firm maintains the necessary independence for an audit.

In Assessing Independence, an Audit Firm May Do Which of the Following