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According to the standards of the profession, which of the following circumstances will prevent a CPA performing audit engagements from being independent?

User Zohan
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Final answer:

A CPA performing audit engagements will not be independent under certain circumstances, such as having a financial interest in the client or providing non-audit services to the client.

Step-by-step explanation:

According to the standards of the profession, a CPA performing audit engagements will not be independent under the following circumstances:

  1. If the CPA has a direct financial interest or a material indirect financial interest in the client being audited.
  2. If the CPA has a significant relationship, such as a close family member, with an officer or director of the client.
  3. If the CPA provides certain non-audit services to the client, such as bookkeeping or financial statement preparation.

These circumstances could compromise the objectivity and integrity of the audit process, as the CPA may have a vested interest in the outcome or be influenced by personal relationships.

User Cmaynard
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