A firm is considered to be not independent if the accountant provides bookkeeping or other services related to the accounting records or financial statements of the audit client.

Question

Quizplus · Accepted Answer

According to auditing standards, a firm is considered not independent if they provide bookkeeping or other services related to the accounting records or financial statements of the audit client. This is because providing such services involves preparing the very information that is being audited, which creates a conflict of interest for the auditor.

A Firm Is Considered to Be Not Independent If the Accountant