An example of a safeguard to independence created by accounting firms is:

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The existence of client acceptance and continuation procedures is an example of a safeguard to independence created by accounting firms. These procedures ensure that the firm is able to maintain its independence by objectively evaluating potential clients and determining whether to accept or continue an engagement with a current client. This helps to prevent situations where the auditor's independence might be compromised, such as when the auditor has a financial interest in the client. Legislation requiring auditor independence (choice B) and the establishment of a code of ethics (choice C) are also important safeguards, but they are typically mandated by regulatory bodies rather than accounting firms. The establishment of an audit committee (choice D) is generally the responsibility of the client rather than the accounting firm, although the firm may work with the committee to ensure that the audit is conducted independently and objectively.

An Example of a Safeguard to Independence Created by Accounting