Which of the following statements is correct regarding auditor independence in fact and in appearance? O The auditor should be independent both in fact and in appearance. The auditor should be independent in fact but not in appearance. O The auditor should be independent in appearance but not in fact. When the auditor does not challenge an inappropriate journal entry made by the client in order to keep the client for future audits, this is an example of loss of independence in appearance.

Which of the following statements is correct regarding auditor independence in fact and in appearance? O The auditor should be independent both in fact and in appearance. The auditor should be independent in fact but not in appearance. O The auditor should be independent in appearance but not in fact. When the auditor does not challenge an inappropriate journal entry made by the client in order to keep the client for future audits, this is an example of loss of independence in appearance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements is correct regarding auditor independence in fact and in appearance?
The auditor should be independent both in fact and in appearance.
The auditor should be independent in fact but not in appearance.
O The auditor should be independent in appearance but not in fact.
When the auditor does not challenge an inappropriate journal entry made by the client in order to keep the client for
future audits, this is an example of loss of independence in appearance.

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