Sues firm was hired to audit a Reno County project that used federal grant money to attempt
Question:
Sue’s firm was hired to audit a Reno County project that used federal grant money to attempt to create jobs for people on welfare. Sue was in charge of the audit, and her team found many questionable practices. When the chief administrator of Reno County’s government heard about Sue’s preliminary findings, he called her into his office and told her that her firm would lose every single audit contract it had with every single unit of Reno County government if he was not pleased with Sue’s audit report. This is an example of: A. A potential personal impairment of independence. B. A potential external impairment of independence. C. A potential organizational impairment of independence. D. None of the above.
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler