Accounting · Auditing and Professional Ethics
Which of the following is the appropriate ethical action when an audit client invites an audit partner to join its board as a non-executive director?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Decline permission for the partner to accept the appointment✓
- 2Allow the partner to accept the appointment provided the role is unpaid and the partner does not participate in financial decisions
- 3Permit the appointment provided the partner takes a leave of absence from the audit firm and an engagement quality review is performed
- 4Allow the partner to accept the non-executive director role, provided they have no involvement in the audit of that client
Correct answer
Decline permission for the partner to accept the appointment
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