Which of the following situations would most likely be in conflict with the responsibilities principle?
A)Auditors perform the engagement with the performance level expected of prudent auditors, but not expert auditors.
B)Auditors obtain expertise in their client's industry as they are conducting the audit examination.
C)Auditors are directly involved with a client manager in a strategic decision-making capacity.
D)Auditors fail to document their assessment of control risk following their study of internal control.

Question

Quizplus · Accepted Answer

The responsibilities principle states that auditors have a responsibility to exercise professional judgement and maintain professional skepticism throughout the audit. Direct involvement with a client manager in a strategic decision-making capacity creates a conflict of interest and impairs the auditor's independence and objectivity, which is in conflict with the responsibilities principle. Options A, B, and D do not necessarily conflict with the responsibilities principle.

Which of the Following Situations Would Most Likely Be in Conflict