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Salmon & Farrar, CPAs perform audits for several publicly traded companies that file their financial statements with the Securities and Exchange Commission. Under SEC rules,
Salmon & Farrar, CPAs perform audits for several publicly traded companies that file their financial statements with the Securities and
Exchange Commission.
Under SEC rules, which of the following would impair Salmon & Farrar's independence with respect to their audit clients?
A professional employee of Salmon & Farrar, CPAs is simultaneously employed by one of the firm's SEC audit clients.
A partner in the firm of Salmon & Farrar, CPAs has a savings account with an SEC audit client. The balance in the savings account is below the amount insured by the Federal
Deposit Insurance Corporation.
A manager in the firm of Salmon & Farrar, CPAs has an automobile loan with one of the firm's SEC audit clients. The loan was obtained under the audit client's normal lending pro
cedures, terms, and requirements. The loan is fully collateralized by the automobile.
The firm of Salmon & Farrar, CPAs, upon request by the audit client, interviews candidates and advises the audit client on the candidate's competence for financial accounting.
administrative, or control positions. The firm does not recommend that the audit client hire a specific candidate for a specific job.
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