In case the undisputed audit fees for carrying out the statutory audit has not been paid,the auditor should not accept the appointment unless such fees are paid otherwise audit will deemed to be not carried out in the independent environment. The auditor’s independence with respect to 2019’s audit will be affected because of Non-payment of undisputed audit fees by client. Audit fees shall be payable by the issue of reportin order to ensure auditor’s independence. To select: The correct option.

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Chapter 19, Problem 19.19MCQ

To determine

Introduction:

In case the undisputed audit fees for carrying out the statutory audit has not been paid,the auditor should not accept the appointment unless such fees are paid otherwise audit will deemed to be not carried out in the independent environment.

The auditor’s independence with respect to 2019’s audit will be affected because of Non-payment of undisputed audit fees by client.

Audit fees shall be payable by the issue of reportin order to ensure auditor’s independence.

To select: The correct option.

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