The audit committee's responsibility for auditor independence concerns
A) Ensuring that partners of the public accounting firm are not stockholders in the company.
B) Ensuring that nonaudit services provided by the auditor do not impair independence.
C) Reporting on auditor independence to the PCAOB.
D) Ensuring that all nonaudit services are provided by auditors who do not perform the financial statement audit.

Question

Quizplus · Accepted Answer

The audit committee's responsibility for auditor independence concerns ensuring that nonaudit services provided by the auditor do not impair independence. This means that the auditor should not provide services that could affect their objectivity or independence in performing the financial statement audit. The other options (A, C, D) do not accurately describe the audit committee's responsibility for auditor independence concerns.

The Audit Committee's Responsibility for Auditor Independence Concerns