Question: Audit independence in fact is most clearly lost when: Multiple Choice a public accounting firm audits competitor companies in the same industry ( e .

Audit independence in fact is most clearly lost when:
Multiple Choice
a public accounting firm audits competitor companies in the same industry (e.g., Coca-Cola and Pepsi).
an audit team fails to discover the clients misleading omission of disclosure about permanent impairment of asset values.
a public accounting firm issues a standard unmodified report, but the reviewing partner fails to notice that the assistants observation of inventory was woefully incomplete.
an auditor agrees to the argument made by the clients financial vice president that deferring losses on debt refinancing is in accordance with generally accepted accounting principles.

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