American Institute of Certified Public Accountants (AICPA) Practice Exam

When an employee of an audit firm is offered employment by an attest client, it creates a significant concern regarding the independence of the audit firm. Independence is crucial in the auditing profession as it ensures that auditors can carry out their duties without any bias or conflict of interest.

When an auditor or an employee at the audit firm is actively seeking or has been offered a job by the client they are auditing, there may be an implicit pressure to produce favorable audit outcomes or reports, which can compromise their objectivity. The potential for a future employment relationship can lead to ethical dilemmas where the auditor might unconsciously favor the client’s interests in their work.

This situation is considered an impairment of independence because it undermines the public's trust in the integrity of the audit. Auditors must maintain an independent mindset and a professional skepticism throughout the audit process. Therefore, being offered a position by the attest client presents a serious risk to the independence and objectivity required in carrying out audit functions, leading to the determination that such an offer impairs independence.