ExpertMedium1 markMultiple Choice
CPA · Question 68 · Area III: SOC Engagements
An auditor is evaluating the 'Independence' of the personnel performing a SOC 2® engagement. Which of the following would impair independence?
An auditor is evaluating the 'Independence' of the personnel performing a SOC 2® engagement. Which of the following would impair independence?
Answer options:
A.
The auditor previously worked for a competitor of the client.
B.
The auditor uses the client's software for their own firm's accounting.
C.
The auditor assisted in the design and implementation of the security controls being tested.
D.
The auditor has a mortgage with a different bank.
How to approach this question
Independence Rule #1: You cannot audit your own work (Self-Review Threat).
Full Answer
C.The auditor assisted in the design and implementation of the security controls being tested.✓ Correct
C
Independence is impaired if the auditor performs management functions or makes management decisions, such as designing or implementing the internal controls they are supposed to audit. This creates a self-review threat.
Common mistakes
Thinking prior employment at a competitor matters.
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