Q10- Principles Of Auditing (ICAN ATSWA Sept 2021 Insight)

 

        

Question 10:

Apart from the statutory qualifications, which of the following qualities and traits should an auditor NOT possess?  

A. Intelligence and tactfulness 

B. Familiarity with the latest developments affecting audit 

C. Diligence 

D. Intimate relationship with the client 

E. Confidentiality

The correct answer is (D)

Past Question Review:

An auditor must at all times exercise objectivity and independence. He or she must have both independence of mind and independence  of  appearance. 

He or she must also be in a position to give an honest and unbiased opinion, or knowingly  allow his name be associated with a misleading financial statement.  

Pursuant to the above and, in order to effectively exercise his independence, members must not: 

Establish family or personal relationship with  client’s companies. It is desirable to avoid professional relationship where personal  relationship exist. Examples of personal  relationship include mutual business interests  with members of the group comprising client,  the audit firm, officers or employees of the client, partners or members of staff of the audit  firm. 

Given the above, the auditor is expected to also possess the following traits and qualities:

• Intelligence and tactfulness 
• Familiarity with the latest developments affecting audit 
• Diligence 
• Confidentiality

but not an intimate relationship with the client.

So the correct answer is (D)

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