Which of the following is one method utilized by the auditing profession to assist in maintaining independence?
A)quality continuing education in relevant areas.
B)screening of auditors by the Federal Trade Commission.
C)partner rotation on public engagements every five years.
D)prohibition of audit services on any public client.

Question

Quizplus · Accepted Answer

Partner rotation on public engagements every five years is a method utilized by the auditing profession to assist in maintaining independence. This helps in preventing the auditors from developing strong personal relationships with the client and becoming too comfortable with them, which can compromise their independence. Option A is also a valid method to maintain independence but it is not the best answer as it is a common requirement for most professions to keep up-to-date with relevant knowledge. Option B and D are invalid as they do not correctly represent the methods used to maintain independence in auditing.

Which of the Following Is One Method Utilized by the Auditing