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What does independence mean in the context of auditing?

  1. A Not depending on any single client's fee
  2. B Being an advocate for the client
  3. C Holding only indirect financial interests in the auditee
  4. D Taking and maintaining an unbiased viewpoint
Answer

Taking and maintaining an unbiased viewpoint

Independence means both independence of mind and in appearance, so the auditor's judgement is not compromised. Fee dependence and financial interests are threats to it, not definitions of it.

All Accounting MCQs

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