Certified Government Auditing Professional (CGAP) Practice Exam

When considering the independence of auditors performing nonaudit services, which statement is true?

1. Auditors should always maintain complete independence regardless of the service.

2. Independence is not a major concern for auditors providing training.

3. Independence concerns only apply during financial audits, not nonaudit services.

4. Nonaudit services require the same independence considerations as audit services.

The correct answer is: Auditors should always maintain complete independence regardless of the service.

The statement that auditors should always maintain complete independence regardless of the service is accurate because independence is a foundational principle in the auditing profession. Auditors are expected to be free from influences that could compromise their judgment, objectivity, or integrity while conducting any form of work, including nonaudit services. This principle is critical to ensuring that stakeholders can trust the quality and reliability of the audit process. Maintaining independence is crucial when auditors provide any services, as it prevents conflicts of interest and upholds public confidence in the auditor's findings and conclusions. When auditors engage in nonaudit services, they must assess how those services may affect their independence. This vigilance ensures that the integrity of the audit remains intact, and stakeholders can have confidence in the outcomes of all services rendered by the auditor. Other considerations, such as the nature of the nonaudit service, the auditor's relationship with the client, and any potential conflicts that may arise, are essential in maintaining that independence. Thus, the emphasis on independence applies universally to all services performed by auditors, reinforcing the essential role of independence in the auditing profession.