Question

For each of the following situations, indicate whether the CPA is "independent" with respect to the client, by choosing "yes" or "no." Independent? The CPA's spouse owns an immaterial direct financial interest in the client. The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock worth, in total $100, in an audit client of the CPA. The CPA's nondependent child owns an immaterial direct financial interest in the client. A CPA's father owns a material investment in a firm audit client, she works on the engagement as a partner but is not aware of the investment. The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that audit engagement.

Answer 1

CPA stands for Certified Public Accountant. A CPA is an accounting professional who has qualified the uniform CPA examination. The independence of the CPA's is the hallmark of the profession. Independence is one of the most important requirements for audit firms and the auditors.

Answer:

a. NO

b. NO

c. YES

d. YES

e. NO