Which of the following would most likely be a violation of the independence requirement found in the responsibilities principle under generally accepted auditing standards?
A)An auditor on the engagement has a distant relative who is employed by a vendor that does a significant amount of business with clients.
B)The client's Chief Executive Officer graduated from the same university as the partner in charge of the accounting firm.
C)An auditor on the engagement owns a financial interest in the stock of the client.
D)The client provides financial support to a number of charitable causes that also receive support from the accounting firm.

Question

Quizplus · Accepted Answer

Owning a financial interest in the stock of the client would most likely impair the auditor's independence and violate the independence requirement under the responsibilities principle of generally accepted auditing standards. The other options do not necessarily present a direct threat to independence.

Which of the Following Would Most Likely Be a Violation