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LO 2-2 2.35 Independence. Generally accepted auditing standards require woditors to be independent. Included within this standard are the concepts of independence in fact and
LO 2-2 2.35 Independence. Generally accepted auditing standards require woditors to be independent. Included within this standard are the concepts of independence in fact and independence in sppearance. Required: Define independence in fact and independence in appearance What two general types of relationships would normally compromise editors' independence? c. For each of the following separate situations, discan whether you believe the auditors' independence has been compromised 1. The waitors' firm provides extensive consulting services to the client, these services provide revenues to the firm that exceed revenues received from the ditengagement 2. The spouse of the partner in charge of the audit engagement occupies an executive level position within the client. 3. A distant relative of a partner within the firm occupies an entry-level position within client of the firm (The asdit is conducted by another office of the firm with which the partner has infrequent contact.) 4. A staff member within the firm own shares of stock of one of that firm's clients. She is not a member of the engagement team serving that cent)
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