To ensure that employees remain independent,an audit firm should

Question

Quizplus · Accepted Answer

Asking employees to sign a form confirming their lack of investment in a company being audited is a common practice to ensure independence. It helps to prevent conflicts of interest and ensures that the auditor can provide unbiased assessments of the company's financial health.

Answer: B 
 Prohibiting an employee from investing in a company being audited by a different branch of the firm helps to prevent any conflicts of interest, even if the auditors are in different locations.

Answer: D 
 Refusing an audit where a staff member has a family member working for the company being audited helps to prevent any perceived or potential conflicts of interest. The cousin may have personal biases or inside knowledge that could affect the auditor's independence.

Answer: C 
 While avoiding personal relationships with clients is a best practice, this choice does not necessarily relate to ensuring employees' independence when performing audits.

To Ensure That Employees Remain Independent,an Audit Firm Should