Economics · Professional Ethics and Auditing
What should Sarah, the engagement partner, do regarding her personal relationship with the client's CFO to preserve professional objectivity?
- 1Accept the situation as common in the industry.
- 2Recuse or remove herself from the engagement.✓
- 3Maintain confidentiality and proceed with the audit.
- 4Disclose the relationship to the audit committee and seek guidance.
Correct answer
Recuse or remove herself from the engagement.
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