Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client?

Question

Quizplus · Accepted Answer

The PCAOB and SEC both agree that an auditor cannot be independent if they are involved in the preparation of financial statements for the same client that they are auditing. This is because there is a risk that the auditor may be biased in their judgment when auditing the financial statements that they prepared themselves. Therefore, Choice A is the correct answer.

Which of the Following Statements Is True with Respect to the PCAOB