Which of the following statements regarding independence with respect to accounting and other services is FALSE?

Question

A) If a PA performs the bookkeeping and makes accounting decisions for a company
and the management does not know enough about the financial statements to take
primary responsibility for them, it might be perceived that the PA has both
prepared the financial statements or other data and given an audit report or other
assurance on his or her own work.
B) If a professional accountant (PA) performs the bookkeeping and makes accounting
decisions for a company and the management does not know enough about the
financial statements to take primary responsibility for them, the PA cannot be
considered independent for assurance services.
C) The PA cannot perform the bookkeeping for a company and also provide assurance
services.
D) The PA can counsel the client management about the accounting principle choices,
but in the final analysis the management must be able to say, "These are our
financial statements (or other data); we made the choices of accounting principles;
we take primary responsibility for them."

Answer 1

C) The PA cannot perform the bookkeeping for a company and also provide assurance
services.