The most likely important flaw leading to the demise of the APB was the perceived lack of:
A) Confidence.
B) Competence.
C) Independence.
D) Importance.

Question

Quizplus · Accepted Answer

The lack of independence was the most likely important flaw leading to the demise of the APB. The board was seen as too closely aligned with the audit firms it was supposed to regulate, which eroded public confidence in its ability to impartially oversee the auditing profession. This ultimately led to the creation of the PCAOB as an independent regulatory body for public company auditing.

The Most Likely Important Flaw Leading to the Demise of the APB