Question

According to the AICPA Code of Professional Conduct, for the auditor to be considered independent with respect to the 2012 audit, the 2011 audit fees must be paid before the ________.

Answer 1

The 2011 audit fees must be paid before the 2012 audit report is issued to maintain the auditor's independence according to the AICPA Code of Professional Conduct.

Step-by-step explanation:

According to the AICPA Code of Professional Conduct, for the auditor to be considered independent with respect to the 2012 audit, the 2011 audit fees must be paid before the 2012 audit report is issued. This requirement is put in place to ensure that there are no financial obligations that might appear to, or in reality, influence the auditor's judgment or behavior. Ensuring audit fees from previous years are paid is part of the independence in appearance, which is crucial for the credibility of the auditor's work.