All litigation by a client related to tax or other nonaudit services will impair independence.

Question

Quizplus · Accepted Answer

Not all litigation by a client related to tax or other nonaudit services will impair independence. The impairment of independence depends on the nature of the litigation and its relation to the audit function. For example, litigation that directly questions the audit work or integrity of the auditor would impair independence, while litigation related to nonaudit services might not, depending on the specifics of the case.

All Litigation by a Client Related to Tax or Other