Question
Asked Jan 22, 2020
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Would it be possible to be objective when auditing a friend's financial statements?  If you think so, tell us why. If no, then describe the impediments you might encounter. 

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Expert Answer

Step 1

An auditor’s independence refers to the independence of the auditor from the parties that are connected to the company or which have a financial interest in the firm. An auditor must be objective and independent while auditing the accounts of the company.

Step 2

Yes, it is possible to be objective while auditing the financial statements of a friend’s company. The auditor is hired for performing the duties honestly. So, if an aud...

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