Financial statements of the client

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Reference no: EM13127623

Which of the following legal situations would be considered to impair the auditor's independence?

A. Actual litigation by the client against the auditor for an amount not material to the auditor or to the financial statements of the client arising out of disputes as to billings for tax services.

B. Actual litigation by the auditor against the client for an amount not material to the auditor or to the financial statements of the client arising out of disputes as to billings for consulting services.

C. Actual litigation by the auditor against the current management alleging management fraud or deceit.

D. An expressed intention by the current management to commence litigation against the auditor alleging deficiencies in audit work for the client, although the auditor considers that there is only a remote possibility that such a claim will be filed.

Reference no: EM13127623

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