Which of the following is true according to Government Independence Standards?
A)Nonaudit services cannot be provided to a government entity that is an attest client.
B)Nonaudit services are allowed providing the audit organization does not perform management functions,make management decisions,or audit its own work.
C)Nonaudit services are allowed as long as the nature of the service is publicly disclosed including a statement that independence has not been compromised.
D)Nonaudit services are allowed if they have been approved by the executive body of the governing organization.

Question

Quizplus · Accepted Answer

According to Government Independence Standards, nonaudit services are allowed as long as the audit organization does not perform management functions, make management decisions, or audit its own work. Option A is incorrect as it states that nonaudit services cannot be provided to a government entity that is an attest client, which is not entirely true. Option C is incorrect as it suggests that disclosure is enough to maintain independence, which is not always true. Option D is incorrect as it suggests that executive approval is enough to maintain independence, which may not be the case.

Which of the Following Is True According to Government Independence