32) Both SEC rules and the Sarbanes-Oxley Act prohibit auditors from providing bookkeeping services to their public company audit clients.

33) Under the interpretations to the AICPA Code, independence is considered to be impaired if fees remain unpaid for professional services provided more than six months before the date of the current year's report.

34) Auditors are allowed to have an indirect financial interest in an audit client, such as ownership of stock in a client's company by the auditor's brother, as long as the amount of the financial interest is immaterial to the brother.

35) CPA firms are required to be independent when performing any professional service.

36) The prohibition on direct financial interests applies to covered members in a position to influence an engagement.

37) All litigation by a client related to tax or other nonaudit services will impair independence.