Question

Which of these is a safeguard to independence created by the audit firm as articulated in the AICPA's independence conceptual framework?

a. Disciplinary mechanisms to promote compliance with independence policies and procedures.
b. Policies and procedures to ensure accurate financial reporting.
c. Professional certifications.
d. Mandatory partner rotation after five years of service.

Answer 1

The AICPA's independence conceptual framework highlights disciplinary mechanisms as a safeguard to maintain auditors' independence.

Step-by-step explanation:

The correct answer to the question "Which of these is a safeguard to independence created by the audit firm as articulated in the AICPA's independence conceptual framework?" is a. Disciplinary mechanisms to promote compliance with independence policies and procedures. This safeguard is designed to ensure that auditors remain free from conflicts of interest and other threats to their ability to conduct an unbiased review of the financial statements. Options b, c, and d are valuable components within the broader accounting and auditing landscape, but they are not specific mechanisms outlined by the AICPA's conceptual framework to ensure auditor independence.