Which one of the following would represent an ethical dilemma for an auditor?
A) being asked to undertake a non-assurance service for an audit client
B) being asked to complete the audit for a non-profit organisation for no fee
C) being treated with cancellation of the audit by a client for not agreeing with management's treatment of an accounting issue
D) being approached to tender for the audit of a newly formed company

Question

Quizplus · Accepted Answer

This scenario presents an ethical dilemma because the auditor is faced with a conflict between their obligation to maintain their professional skepticism and independence and the potential consequence of losing a client. The auditor must make a decision whether to compromise their professional integrity and go along with management's treatment of the accounting issue or risk losing the client by standing firm on their ethical principles. The other options (A, B, and D) do not present significant ethical dilemmas.

Which One of the Following Would Represent an Ethical Dilemma