If the firm auditing a company realizes that it is not independent with respect to the client,it will issue a qualified of opinion based on the inherent GAAP violation imposed by the audit firm.

Question

Quizplus · Accepted Answer

A lack of independence by the audit firm is a violation of auditing standards, not GAAP, and typically results in the firm withdrawing from the engagement rather than issuing a qualified opinion.

If the Firm Auditing a Company Realizes That It Is