Ethics and General Principles

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Question

Why is professional skepticism important in an audit?

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Answer

It counters bias and improves evidence evaluation.

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Question

When can an immediate family member at the client be less of an independence issue?

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Answer

When the family member is not in a key position.

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Question

Why is a direct financial interest in an attest client always a problem?

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Answer

It creates a bright-line independence impairment.

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Question

Why does any direct financial interest impair independence?

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Answer

Any direct financial interest creates self-interest threat.

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