In determining the types of activities,engagements and interactions an auditor should have with a client,what must the CPA and the audit firm do?
A)Follow the rules exactly as they are written.
B)Assess all of their relationships with every client to ensure that independence is intact.
C)Focus on client satisfaction above all other considerations.
D)Realize that ethics are only guidelines and a matter of personal judgment.

Question

Quizplus · Accepted Answer

The CPA and the audit firm must assess all of their relationships with every client to ensure that independence is intact. This is necessary to maintain objectivity and adhere to ethical principles. Following the rules exactly as they are written is important, but assessing relationships is a crucial step in determining the types of activities, engagements, and interactions an auditor should have with a client. Focusing on client satisfaction above all other considerations or believing that ethics are only guidelines and a matter of personal judgment are not appropriate approaches for a CPA or audit firm.

In Determining the Types of Activities,engagements and Interactions an Auditor