Respuesta :
Under SEC rules, an auditor is not independent with respect to the audit client.
What are SEC independence rules?
- A reasonable, well-informed investor would conclude that an auditor is not capable of exercising objective and unbiased judgment on all matters covered by the audit engagement, according to SEC regulations.
- In this case, the auditor is not independent with regard to the audit client.
- The auditor must be objectively honest in order to be considered independent, and he must be unbound by any ties to the client, its owners, management, or management organization.
- Public companies, specific company insiders, and broker-dealers must submit periodic financial statements and other disclosures to the Securities and Exchange Commission (SEC).
- When deciding whether to invest in a company, financial experts and investors rely on SEC filings to inform their decisions.
hence,Under SEC rules, an auditor is not independent with respect to the audit client.
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