Which of the following would be least likely to preclude an audit firm from proposing on a potential client due to independence concerns?
A) A recently-promoted partner in the audit firm holds a financial interest in the potential client company.
B) Someone who resigned from the audit firm three years ago is now the Chief Accounting Officer at the potential client company.
C) The audit firm provides internal audit outsourcing and certain nonaudit services to the client company.
D) The audit firm's pension plan holds securities of the potential client company.

Question

Quizplus · Accepted Answer

Independence concerns primarily revolve around current relationships and financial interests that could impair an auditor's objectivity. The fact that someone resigned from the audit firm three years ago and now works for the potential client does not inherently affect the firm's independence, unlike the other options which involve direct financial interests or services that could compromise independence.

Which of the Following Would Be Least Likely to Preclude