Question
A partner for a multioffice CPA firm has a mother who owns 4% of a potential audit client. This 4% is not material to the
A partner for a multioffice CPA firm has a mother who owns 4% of a potential audit client. This 4% is not material to the client nor to the mother's net worth. The engagement would be performed by an office with which the partner is associated. Regarding the AICPA CODE OF CONDUCT would the firm be considered in violation for purposes of accepting the audit engagement? a. Yes, but none of these answers, a-b-c, apply b. No. The independence rules regarding covered members will not be violated c. Yes. The independence rules regarding covered members will be violated d. No because the independence rules regarding non covered members apply.
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