Which of the following is a concern that may arise from an audit firm completing an audit for a substantially reduced fee?
A) a more efficient audit being conducted because the audit is completed within a budgeted time frame
B) auditor independence
C) increased staffing to complete the audit
D) consistent applications of client accounting principles

Question

Quizplus · Accepted Answer

If an audit firm completes an audit for a substantially reduced fee, it may raise concerns about auditor independence. This is because the reduced fee might cause the audit firm to compromise on the quality of the audit or on the procedures performed. It could also lead to a perception that the audit firm is not sufficiently independent from the client and may affect the credibility of the auditors' report.

Which of the Following Is a Concern That May Arise