Which of the following can eliminate threats to independence according to ethical standards?

Declining or terminating the audit engagement is a definitive action that directly addresses and eliminates threats to independence. Independence is a critical principle in auditing, ensuring that auditors remain unbiased and objective in their assessments. When a situation arises that compromises this independence—such as conflicts of interest, threats from management, or relationships that could impair objectivity—terminating the engagement ensures that the auditor does not participate in an audit where their impartiality may be questioned.

Taking this step reflects a necessary commitment to ethical standards and the integrity of the audit process. By stepping away from the engagement, the auditor avoids any potential biases that could affect their judgment and the quality of their work. This action helps maintain the trustworthiness of the auditor’s report and the overall credibility of the audit profession.

In contrast, improving communication, enhancing the audit schedule, or hiring additional team members do not inherently resolve issues related to independence. While these measures might facilitate a smoother audit process, they do not necessarily address the root causes of threats to independence. Hence, they may not effectively ensure objectivity and impartiality in the auditing process.