Can an auditor provide consulting services to a client they audit?

The rationale for choosing that response stems from the ethical and professional standards governing auditors, which prioritize independence and objectivity in the audit process. When an auditor provides consulting services to a client they audit, it creates a conflict of interest that could impair their impartial judgment. Independence is cornerstone in auditing; it ensures that the auditor's opinions and conclusions are not influenced by any relationships or financial arrangements with the client.

Maintaining this independence is essential for preserving the credibility of the audit results. An auditor who also acts as a consultant may be viewed as having a vested interest in the outcome of the audit, which could lead to biases in their assessment. By adhering strictly to the principle of independence, auditors help maintain public trust in financial reporting and compliance processes.

Other options suggest various scenarios under which consulting might seem permissible, but they typically ignore the fundamental requirement for auditors to remain objective and free from conflicts of interest to uphold the integrity of the audit process.