Question

Under the independence standards of theGAO for performing audits in accordance with generally accepted government auditing standards, which of the following are overreaching principles for determining whether a non audit service impairs independence?

1. Auditors must not perform non audit services that involve performing management functions or making management decisions.
2. Auditors must not audit either their own work or provide non audit services in situations in which the non audit services are significant or material to the subject matter of the audit.
3. Auditors must not perform non audit services which require independence.

Answer 1

The GAO has overreaching principles for determining whether a non-audit service impairs independence, including not performing management functions or making decisions, not auditing their own work or providing significant non-audit services for the subject matter, and not performing non-audit services that require independence.

Step-by-step explanation:

Under the independence standards of the GAO for performing audits in accordance with generally accepted government auditing standards, there are three overreaching principles for determining whether a non-audit service impairs independence:

1. Auditors must not perform non-audit services that involve performing management functions or making management decisions.
2. Auditors must not audit their own work or provide non-audit services in situations where the non-audit services are significant or material to the subject matter of the audit.
3. Auditors must not perform non-audit services that require independence.