In order for an auditor to be trustworthy, it is important that he or she be an impartial third party. The auditor cannot have any interest in the success or failure of the organization that he or she is auditing. Look at a case in which the auditor had a close friendship with the CFO of the company being audited Does the friendship described in the case cause a conflict of interest and compromise independence?

Answer rating: 100% (QA)

Independence will be considered to be impaired if during the period of a professional engagement a member or his or her firm had any cooperative arran... View the full answer