Because an external auditor is paid a fee by a client company, he or she
A) is absolutely independent and may conduct an audit.
B) may be sufficiently independent to conduct an audit.
C) is never considered to be independent.
D) must receive approval from the relevant provincial securities commission before conducting an audit.

Question

Quizplus · Accepted Answer

While the external auditor's fee may put their independence in question, they may still be considered sufficiently independent to conduct an audit if they adhere to specific standards and regulations. The independence of the auditor is also evaluated by the client company before hiring them to ensure objectivity and integrity.

Because an External Auditor Is Paid a Fee by a Client