Family members – Knowsia

AAA – L3 – SA – Q5.2 – Rules of professional conduct

Question

Which of the following statements is INCORRECT?

A An auditor may serve on the board of directors of an audit client.

B An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.

C Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.

D An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.

Answer

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