Final answer:
The factor that does not create a demand for external audit services is the requirements of the state boards of accountancy, which regulate the licensing and certification of auditors. Other factors such as potential bias by management, remoteness between a user and the organization, and complexity of accounting processing systems create a demand for external audit services.
Step-by-step explanation:
The factor that does not create a demand for external audit services is a. Requirements of the state boards of accountancy. State boards of accountancy regulate the licensing and certification of auditors, but they do not directly create a demand for external audit services.
On the other hand, b. Potential bias by management in providing information creates a demand for external audit services because it ensures an independent and objective review of the financial statements.
c. Remoteness between a user and the organization also creates a demand for external audit services. When there is limited access to information about an organization's financial position, external auditors provide assurance to users that the financial statements are reliable and accurately represent the organization's financial health.
Lastly, the d. Complexity of the accounting processing systems can create a demand for external audit services. Complex accounting systems increase the risk of errors or fraudulent activities, making it necessary to have external auditors who specialize in assessing the effectiveness of these systems.