In 20X2, Marg Levy, CPA, performed an environmental audit of Scoop Mining. As a result of that engagement, she prepared a report which included several recommendations to improve compliance with environmental protection laws. In 20X2, Ms. Levy has been approached to perform another audit of environmental protection procedures, some of which are based on her earlier recommendations. Which of the following statements is TRUE?

A. Ms. Levy must decline the audit as it conflicts with her independence.

B. Ms. Levy must restrict herself to performing specified tests of procedures that were not in her recommendations in order to protect her independence.

C.Ms. Levy may perform the audit including work on her recommended procedures, as independence is less important in an environmental compliance audit than in a financial statement audit.

D. Ms. Levy may perform the audit including work on her recommended procedures since she cannot be associated with nonfinancial information, so the concept of independence does not apply.

Answer rating: 100% (QA)

Answer Correct CMs Levy may perform the audit including work on her recommended procedure... View the full answer