What does independence mean for a CPA?Independence generally implies one's ability to act with integrity and exercise objectivity and professional skepticism. The AICPA and other rulemaking bodies have developed rules that establish and interpret independence requirements for the accounting profession.
Which of the following would impair a CPA's independence?According to professional standards, which of the following circumstances will impair a CPA's independence? A partner in the firm who works in the same office as the CPA, but performs no services for the client, has a material investment in a mutual fund which invests in the client.
Which of the following will impair the independence of a CPA in public practice?AICPA rules state that an accountant's independence will be impaired if the accountant: makes investment decisions on behalf of audit clients or otherwise has discretionary authority over an audit client's investments. executes a transaction to buy or sell an audit client's investment.
In which of the following situations is independence impaired?Answer—Independence would be considered to be impaired if a covered member accepts more than a token gift from a client, even with the knowledge of the member's firm. [Revised, July 2002, to reflect conforming changes necessary due to the revision of interpretation 101-1.]
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