Question

The Gagas conceptual framework for independence should be employed

a.At the end of the audit engagement.
b.just prior to issuing the audit report.
c.Prior to accepting a nonaudit service engagement at an audited entity.
d.Annually.
e.All of the choices are correct

Answer 1

The GAGAS framework for independence should be employed at various points throughout an audit engagement: at the end, before issuing the audit report, before accepting a nonaudit service engagement, and annually. All listed choices are correct.

Step-by-step explanation:

The GAGAS (Generally Accepted Government Auditing Standards) conceptual framework for independence is designed to help auditors maintain independence in both fact and appearance throughout an audit engagement. This framework is critical to the credibility of the audit. The question pertains to when this framework should be employed. Here are the correct times:

• At the end of the audit engagement: to evaluate whether independence was maintained throughout the audit.
• Just prior to issuing the audit report: to ensure that the final report is not compromised by any independence issues.
• Prior to accepting a nonaudit service engagement at an audited entity: to assess potential independence implications of the nonaudit services.
• Annually: for ongoing review of independence with respect to recurring audits.

Therefore, all of the choices are correct, as the GAGAS framework should be applied at various times to safeguard independence.