What happens if the audit team is not independent?
If the audit team determines that they are not independent, then the audit team should issue a disclaimer of opinion or withdraw from the audit. Under PCAOB and AICPA rules, the external auditor must be independent from the client.
If for whatever reason, the audit team is required to perform an audit where they know they are not independent, the audit team should still issue a disclaimer of opinion.
Back To All Questions