Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just need some help, I listed my answers just want to know if I am understanding it correctly Jack works for Red, Blue and Green

Just need some help, I listed my answers just want to know if I am understanding it correctly

Jack works for Red, Blue and Green CPAs. Each year Red, Blue and Green asks Jack to fill out a form indicating all of his financial interests and those of his family members and close friends. Red, Blue and Green uses these charts to ensure that their auditors comply with the independence standards as described by the AICPA Code of Professional Conduct.

Interpretation 101-1 of the Code of Professional Conduct contains examples of situations that may impair an auditor's independence. Relationships are divided into three categories for purposes of the interpretations: immediate family, close relatives, and other relatives and friends. It is important for an auditor to understand how existing relationships fit into these categories so that the auditor can determine if there is an effect on his or her independence.

Understanding of relationships is of primary importance to understanding the auditors Code of Professional Conduct regarding independence. Place the following relationships into the appropriate category.

Immediate Family

Close Relative

Other Relative or Friend

Brother, Spousal Equivalent(domestic partner), college friend, Independent child, dependent parent, nephew, sister, cousin, golf partner, niece, grandfather, dependent child, spouse, roommate, mother, father

For immediate family I have dependent child, spouse, spouse equivalent, father, mother, independent child, grandfather

Close relative I have dependent parent, sister, brother, cousin, niece, nephew

Other relative or friend I have golf partner, roommate and college friend

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2016

Authors: ACA Simplified

1st Edition

1523200464, 978-1523200467

More Books

Students also viewed these Accounting questions

Question

What is just war theory, and how did it come to be developed?

Answered: 1 week ago