Sagot :
Answer: a. The auditor provides services to employee benefit plans sponsored by governmental entities
Explanation:
Department of Labor independence rules apply to the audit services that are provided to employee benefit plans.
The situation requiring an auditor to apply Department of Labor (DOL) independence rules is when the auditor provides services to employee benefit plans sponsored by governmental entities
The auditor applies the Department of Labor (DOL) independence rules when the auditor provides services to employee benefit plans sponsored by governmental entities. Thus option A is correct.
Auditor has been the reviewing authority of the accounts and maintaining their accuracy. The auditor's independence has been the activity of the auditor free from the influence of the other financially interested parties.
Department of Labor (DOL) independence rules do not entitle the auditor to take benefit from the plan they audit. The benefits to the employee service have been sponsored by the government entities.
Thus, the Auditor applies the Department of Labor (DOL) independence rules, when the auditor provides services to employee benefit plans sponsored by governmental entities. Thus option A is correct.
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