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If an attest client were to be acquired by a company in which the firm has an interest or relationship, would independence be compromised? a.
If an attest client were to be acquired by a company in which the firm has an interest or relationship, would independence be compromised?
a. No, if the attest engagement is for periods prior to the acquisition.
b. No, if the relationship is disclosed.
c. Yes, because it is good for the acquirer to rotate its audit firm.
d. Yes, and the audit firm must resign.
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
