Question

Which of the following is true for audits of governmental entities under Government Independence Standards?

a. CPAs that perform nonaudit services are prohibited from being a member of the audit team.

b. The government entity must have established policies to assure the nonaudit services will not affect the audit firm's ability to perform the audit.

c.Personnel who provide nonaudit services are prohibited from planning, conducting, or reviewing audit work related to the nonaudit service. d. The audit organization must never reduce the scope of the audit because of nonaudit services performed.

Answer 1

Solution:-

Which of the following is true for audits of governmental entities under Government Independence Standards:-

c.Personnel who provide nonaudit services are prohibited from planning, conducting, or reviewing audit work related to the nonaudit service.

Explanation:-

Personnel who provide nonaudit services are prohibited from planning, conducting or reviewing audit work related to the nonaudit service is allowed under the Government Independence Standards.