An Auditor Is About to Commence a Recurring Annual Audit

Multiple Choice

An auditor is about to commence a recurring annual audit engagement. The continuing auditor's independence would ordinarily be considered to be impaired if the prior year's audit fee:

A) was unusually large.
B) has not been paid and will not be paid for at least twelve months.
C) has not been paid and the client has filed a voluntary petition for bankruptcy.
D) was renegotiated during the prior year audit based on the need for expanded testing.