Final answer:
True. Audit independence will be impaired when non-attest services are provided for an audit client unless management accepts responsibility for the results of the services.
Step-by-step explanation:
True. Audit independence will be impaired when non-attest services are provided for an audit client unless management accepts responsibility for the results of the services. Non-attest services refer to services such as bookkeeping, payroll, or IT consulting that are not directly related to the audit process. When these services are provided by the same firm conducting the audit, there is a risk that the independence of the auditor may be compromised.
If management accepts responsibility for the results of the non-attest services, it means they acknowledge that the services were performed by the same firm conducting the audit, and they understand that this may lead to an impairment of audit independence. By accepting responsibility, management is essentially taking ownership of any bias or potential conflict of interest that may arise due to the provision of non-attest services.
For example, if the auditors also provide consulting services on internal controls for the same client, their independence might be questioned, as they are supposed to objectively evaluate the effectiveness of those controls during the audit. To maintain audit independence, it is generally recommended to restrict the provision of non-attest services for audit clients or to ensure appropriate safeguards are in place.