According to the PCAOB, an accounting firm's independence is least likely to be impaired if the firm

A. Provides a service to the audit client for a contingent fee.

B. Receives a commission from the audit client.

C. Has an audit client that employs a former firm professional.

D. Provides tax services to a person in a financial reporting oversight role at the audit

Question

Business

Tobias Mcmahon

27 October, 15:58

According to the PCAOB, an accounting firm's independence is least likely to be impaired if the firm

A. Provides a service to the audit client for a contingent fee.

B. Receives a commission from the audit client.

C. Has an audit client that employs a former firm professional.

D. Provides tax services to a person in a financial reporting oversight role at the audit

+5

Answers (1)

Know the Answer?

Juliette Huffman · Answer 1

The correct answer is B. Receives a commission from the audit client.

Explanation:

In the "Basis for opinion" section, a statement is required that the auditor:

• It is a public accounting firm registered with the PCAOB and

• You are required to be independent in relation to the company in accordance with the federal securities laws of the United States and the applicable rules and regulations of the SEC and the PCAOB.