WebOn the following scenarios, determine if the auditor involved has his/her independence impaired. Cite the evidence of independence impairment, identify the threat type, and what safeguard he/she can apply to eliminate or reduce the threat to acceptable low level.• Ben Santos works as a manager in the Manila office of an international CPA firm. WebWould independencebe impairedif a CPA firmretained an independent contractor (as defined by IRS regulations and other federal regulatory guidance such as case law and revenue rulings) on a part-time basis that is employed by or associated with an attest clientin a key position? Answer. Yes.

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WebA loan to an attest client can impair independence. The thought here is that the CPA may have a self-interest in the client; namely, the collection of unpaid fees. And this self … WebIndependence would not be impaired in which one of the following situations? A. A member purchases one share of stock of an attest client. B. A member customizes an attest client's commercial off-the-shelf financial information system. C. monkey craft bar

Independence Issues in Not-for-Profit Audits - The CPA …

WebMay 23, 2007 · Independence also is not impaired if, while testifying as a fact witness, a CPA is solicited for opinions pertaining to matters within his or her expertise. Therefore, where a CPA who audited a client is subpoenaed as a fact witness, the CPA could testify without compromising independence. WebUnder DOL rules, independence is impaired when an auditor also serves as an investment advisor to the employee benefit plan. Which of the following items impairs independence under U.S. ethics standards, but does not necessarily impair independence under the IFAC Code of Ethics for Professional Accountants? a. WebTo help CPAs avoid situations that may lead to a third party’s perception of impaired independence, keep in mind these simple, yet important, risk control principles: … monkey costumes for halloween