Question: Which statement best explains why the SEC has concerns about the independence of an audit firm that has a contingent fee arrangement with its audit

Which statement best explains why the SEC has concerns about the independence of an audit firm that has a contingent fee arrangement with its audit client?

2023-07.

  • The firm may fail to exercise due care when performing the audit.
  • The firm may be overly skeptical about the client's financial position. The firm may have a mutuality of interests with its client.

O The firm may have a conflicting interest with its

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