Which of the following is true?
A) Members of an audit engagement team cannot speak with audit client officers about matters outside the scope of the audit while the audit engagement is in progress.
B) Audit team members who leave the public accounting firm for employment with audit clients can provide audit efficiencies (next year) because they are very familiar with the firm's audit plans.
C) Audit team partners who leave the public accounting firm for employment with audit clients can retain variable annuity retirement accounts established in the person's former firm retirement plan.
D) The public accounting firm must discuss with the audit client's board or its audit committee the independence implications of the client's having hired the audit engagement team manager as its financial vice president.

Question

Quizplus · Accepted Answer

The public accounting firm must discuss and assess the independence implications of the client's hiring an audit engagement team member as its financial VP. This is necessary to maintain objectivity and independence in the audit process. A) is incorrect because communication with client officers may be necessary for the audit, but should be limited to matters within the scope of the audit. B) is incorrect because audit team members who leave for employment with clients cannot share confidential information or use their knowledge of audit plans to create efficiency. C) is incorrect because former partners of the public accounting firm are subject to restrictions on retaining financial interests in the firm's clients.

Which of the Following Is True