An auditor’s independence would not be considered impaired if she or he hada. Owned common stock of the audit client but sold it before the company became a client.b. Sold short the common stock of an audit client while working on the audit engagement.c. Served as the company’s treasurer for six months during the year covered by the audit butresigned before the company became a client.d. Performed the bookkeeping and financial statement preparation for the company, whichhad no accounting personnel and for which the president had no understanding ofaccounting principles.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.7DC
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An auditor’s independence would not be considered impaired if she or he had
a. Owned common stock of the audit client but sold it before the company became a client.
b. Sold short the common stock of an audit client while working on the audit engagement.
c. Served as the company’s treasurer for six months during the year covered by the audit but
resigned before the company became a client.
d. Performed the bookkeeping and financial statement preparation for the company, which
had no accounting personnel and for which the president had no understanding of
accounting principles.

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