Which of the following statements is INCORRECT?
APurchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
BAn auditor who was recently a director of an audit client must not be assigned to the audit team for that client.
CAn auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
DAn auditor may serve on the board of directors of an audit client.
Correct answer
D. An auditor may serve on the board of directors of an audit client.
Explanation
An auditor may serve on the board of directors of an audit client. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.