One reason independence in appearance is used to evaluate threats to independence is:
A) Factual independence is based on unobservable matters
B) Independence in appearance links to other rules of conduct
C) Threats to independence can only be measured using a safeguards approach
D) Threats to independence always exist when perceptions indicate a conflict of interests may exist between the auditor and client

Question

Quizplus · Accepted Answer

Factual independence is indeed based on unobservable matters, making it difficult to assess directly. Independence in appearance, on the other hand, concerns how the auditor's independence is perceived by others, which is crucial because it affects the credibility of the audit.

One Reason Independence in Appearance Is Used to Evaluate Threats