Final answer:
If an auditor is not independent, they must not accept the audit engagement, as independence is critical for the objectivity and integrity of the audit process.
Step-by-step explanation:
When an auditor is not independent with respect to a client, the auditor must not accept an audit engagement. Independence is a cornerstone of the auditing profession, as it allows auditors to perform their work objectively and without any bias for or against the client. If an auditor were to determine that they have a conflict of interest or any other condition that impedes their independence, they must refrain from undertaking the audit. Offering a review report or notifying a professional body like the AICPA about the lack of independence does not mitigate the requirement for independence in an audit. Similarly, simply stating the lack of independence in the audit report is not deemed a sufficient action in such cases. Instead, they must decline the audit engagement entirely.