According to the profession's ethical standards,an auditor would be considered independent in which of the following instances? The
A)auditor's chequing account,which is fully insured by CDIC,is held at a client financial institution.
B)client comprises 75% of the auditor's fees.
C)auditor does not have enough employees to meet the client's reporting deadline.
D)client owes the auditor fees for two consecutive annual audits.

Question

Quizplus · Accepted Answer

An auditor is considered independent if their financial interests do not compromise their objectivity and impartiality towards the audit. Having a fully insured checking account at a client financial institution is generally not considered a threat to independence, as it is a normal consumer relationship protected by insurance, unlike the other options which directly impact the auditor's ability to remain unbiased and objective.

According to the Profession's Ethical Standards,an Auditor Would Be Considered