AICPA (adapted) Independence) The attribute of independence has been traditionally associated with CPA's function of auditing and expressing opinions on financial statements. Required ka. What is meant by "independence" as applied to the CPA's function of auditing an pressing opinions on financial statements? Discuss. ex kb. CPAs have imposed on themselves certain rules of professional conduct that induce their members to remain independent and to strengthen public confidence in their inde- pendence. Which of the Rules of Conduct are concerned with the CPA's independence? Discuss. c. The Wallydrug Company is indebted to a CPA for unpaid fees and has offered to issue to the CPA unsecured interest-bearing notes. Would acceptance of these notes have any bearing on the CPA's independence with respect to Wallydrug Company? Discuss. d. The Rocky Hill Corporation was formed on October 1, 20X0, and its fiscal year will end on September 30, 20X1. You audited the corporation's opening balance sheet and dered an unqualified opinion on it. A month after rendering your report, you are offered the position of secretary of the company because of the need for a complete set of offh cers and for convenience in signing various documents. You will have no financial inter est in the company through stock ownership or otherwise, will receive no salary, will not keep the books, and will not have any influence on its financial matters other than occa sional advice on income tax matters and similar advice normally given a client by CPA. ren .Assume that you accept the offer but plan to resign the position prior to conducting your annual audit with the intention of again assuming the office after rendering an opinion on the statements. Can you render an independent opinion on th statements? Discuss. 2. Assume that you accept the offer on a temporary basis until the corporation has ten under way and can employ a secretary. In any event, you would resign the position before conducting your annual audit. Can you render pendent opinion on the financial statements? Discuss. e y an inde- AICPA AICPA (adapted) Independence) The attribute of independence has been traditionally associated with CPA's function of auditing and expressing opinions on financial statements. Required ka. What is meant by "independence" as applied to the CPA's function of auditing an pressing opinions on financial statements? Discuss. ex kb. CPAs have imposed on themselves certain rules of professional conduct that induce their members to remain independent and to strengthen public confidence in their inde- pendence. Which of the Rules of Conduct are concerned with the CPA's independence? Discuss. c. The Wallydrug Company is indebted to a CPA for unpaid fees and has offered to issue to the CPA unsecured interest-bearing notes. Would acceptance of these notes have any bearing on the CPA's independence with respect to Wallydrug Company? Discuss. d. The Rocky Hill Corporation was formed on October 1, 20X0, and its fiscal year will end on September 30, 20X1. You audited the corporation's opening balance sheet and dered an unqualified opinion on it. A month after rendering your report, you are offered the position of secretary of the company because of the need for a complete set of offh cers and for convenience in signing various documents. You will have no financial inter est in the company through stock ownership or otherwise, will receive no salary, will not keep the books, and will not have any influence on its financial matters other than occa sional advice on income tax matters and similar advice normally given a client by CPA. ren .Assume that you accept the offer but plan to resign the position prior to conducting your annual audit with the intention of again assuming the office after rendering an opinion on the statements. Can you render an independent opinion on th statements? Discuss. 2. Assume that you accept the offer on a temporary basis until the corporation has ten under way and can employ a secretary. In any event, you would resign the position before conducting your annual audit. Can you render pendent opinion on the financial statements? Discuss. e y an inde- AICPA