Interpretations of the rules regarding independence allow an auditor to serve as
A) a director or officer of an audit client.
B) an underwriter for the sale of a client's securities.
C) a trustee of a client's pension fund.
D) an honorary director for a not-for-profit charitable or religious organization.

Question

Quizplus · Accepted Answer

The rules allow an auditor to serve as an honorary director for a not-for-profit charitable or religious organization, as long as it is not an audit client. Choices A, B, and C are all prohibited under the rules of independence, as they could create a conflict of interest or impair the auditor's ability to remain objective and impartial when performing audit services.

Interpretations of the Rules Regarding Independence Allow an Auditor to Serve