Emma Jones is about to begin a recurring annual audit engagement.As the continuing auditor, her independence would ordinarily be considered to be impaired if the previous year's audit fee:

Question

Quizplus · Accepted Answer

According to the AICPA Code of Professional Conduct, a continuing auditor's independence may be impaired if fees from the previous year's audit have not been paid and are unlikely to be paid within a reasonable period of time. In this scenario, option B states that the fees will not be paid for at least 12 months, which meets this criteria. Therefore, Emma Jones' independence would be considered impaired. Options A, C, and D do not meet the criteria for impairing independence in this scenario.

Emma Jones Is About to Begin a Recurring Annual Audit