In pursuing its quality control objectives with respect to independence, an auditing firm may use policies and procedures such as ______________.

Emphasizing independence of mental attitude in firm training programs and in supervision and review of work

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Prohibiting employees from owning stock of public companies

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Suggesting that employees conduct their banking transactions with the banks that do not maintain accounts with client firms

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Assigning employees who may lack independence to research positions that do not require participation in field audit work

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Solution

The correct option is A Emphasizing independence of mental attitude in firm training programs and in supervision and review of work
Independence is one of the basic requirements of any auditor.
In order to discharge his duties, he should be free from any mental bias on the work to be performed.
Other options given in the question are not relevant when it comes to independence of an auditor.

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___

Q. A. Its business decisions are made on the timely and accurate flow of information.
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(CAT 1996)

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