Independence requires that the auditor be:

A A shareholder of the client

B Free from financial interest and undue influence that could impair objectivity

C A former employee of the client

D Related to management

✓ Correct Answer: Option B

Auditor independence (both in fact and appearance) is fundamental to the credibility of the audit.

💡 Why is B) the correct answer?

The correct answer to the question "Independence requires that the auditor be:" is Option B: Free from financial interest and undue influence that could impair objectivity.

The other options — A) A shareholder of the client, C) A former employee of the client, D) Related to management — are incorrect for this CPA Exam Prep question. As explained above: Auditor independence (both in fact and appearance) is fundamental to the credibility of the audit.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Auditing & Attestation (AUD) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Independence requires that the auditor be:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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