An audit firm is not considered independent when it performs which of the following services for a publicly traded audit client?
A)Tax return preparation as approved by the board of directors.
B)Basic accounting record keeping and financial statement preparation.
C)Accounting information system design and implementation.
D)Both B and C.
E)None of the above.

Question

Quizplus · Accepted Answer

Basic accounting record keeping, financial statement preparation, and accounting information system design and implementation are all considered non-audit services that impair independence if performed by an audit firm for a publicly traded audit client. Tax return preparation is allowed as long as it is approved by the board of directors. Therefore, choice D is the correct answer.

An Audit Firm Is Not Considered Independent When It Performs