The following questions concern auditor independence. Choose the best response. 

a. What is the meaning of the rule that requires the auditor be independent? 

(1) The auditor must adopt a critical attitude during the audit. 

(2) The auditor’s sole obligation is to third parties. 

(3) The auditor may have a direct ownership interest in the client’s business if it is not material. 

(4) The auditor must be without bias with respect to the client under audit. 

b. Which of the following services can be offered to public company audit clients under SEC requirements and the Sarbanes–Oxley Act? 

(1) Tax services for executives involved in financial reporting 

(2) Tax planning not involving tax shelters 

(3) Internal audit outsourcing 

(4) Bookkeeping and other accounting services 

c. An auditor strives to achieve independence in appearance to 

(1) Comply with auditing standards related to audit performance. 

(2) Become independent in fact. 

(3) Maintain public confidence in the profession. 

(4) Maintain an unbiased mental attitude.