The firm of McMaster and Martin, CPA's is concerned that its client's current corporate culture may have an impact on the firm's independence. What kinds of safeguards can the client introduce or create to reduce the threat to independence?

Question

Quizplus · Accepted Answer

Introducing appropriate corporate governance mechanisms such as an audit committee and ensuring the responsibility for the appointment and removal of an auditor rests with independent directors on the audit committee or the board are both effective safeguards to reduce the threat to independence. Therefore, both choices (a) and (b) are the best options.

The Firm of McMaster and Martin, CPA's Is Concerned That