Question

Anthony is a member of the engagement team performing an audit of xyz. during the engagement, the president of xyz offers him a key position at the company. he accepts the offer. Which safeguard does the independence rules require Anthony to implement after accepting a key position at XYZ during the audit engagement?

A) Cooling-off period
B) Ethical wall
C) Disengagement
D) Rotation of personnel

Answer 1

The independence rules require Anthony to implement an Ethical wall after accepting a key position at XYZ during the audit engagement.

Step-by-step explanation:

The safeguard that the independence rules require Anthony to implement after accepting a key position at XYZ during the audit engagement is B) Ethical wall. An ethical wall, also known as a Chinese wall, is a separation between audit and non-audit activities within a firm. It is designed to prevent conflicts of interest and maintain independence and objectivity in the audit process.