Which of the following actions must you perform in relation to the financial interests of your spouse prior to getting married?

Explain to your spouse that you must monitor constantly your financial relationships and maintain the investments portfolio updated on the KPMG Independence Compliance System (KICS), if you're required to maintain a KICS account

Check if a relationship is permissible before the acquisition of any investments by you or your future spouse even if you keep separate accounts

Report all reportable investments that your spouse has on the KPMG Independence Compliance System (KICS), if you're required to maintain a KICS account

Analyze investments held by you and your spouse jointly and independently and ensure restricted investments are disposed of prior to getting married

Question 8

You have started working for a tech company that is a new audit client, but your brother works there as a senior software engineer. You are unsure whether this causes an independence issue. What should you do?

Have your brother speak to his manager at the tech company to see if they have an issue with you being on the audit team

Since he is not in the accounting department, there is no independence issue to worry about

Tell your brother not to mention it and don't speak with him while at the client's office

Consult with your engagement team lead and/or the ethics and independence group at your member firm

Question 9

Which of the following types of pension plans do independence rules apply to?

A pension your spouse holds with a former employer

A pension your dependent child holds at their part-time job

All answers are correct

A pension your spouse holds with a current employer

Question 10

As a partner, partner-equivalent or managerial employee, you can become a covered person to a restricted entity even if you do not provide any audit services to that entity.

Is this statement true or false?

True

False

Question 11

A covered person may hold a loan with an IESBA restricted entity as long as the loan is obtained under normal lending procedures, terms and requirements and is not otherwise prohibited by your member firm or local legislation/regulation.

Is this statement true or false?

True

False

Question 12

Your brother-in-law is a financial planning professional and manages your investment portfolio on your behalf. What are the independence implications of this arrangement?

You must report all of your brother-in-law's financial interests in KICS

Your brother-in-law has external access to KICS so is responsible for ensuring you remain independent

You are personally responsible for ensuring that your brother-in-law follows all KPMG independence rules and policies as they apply to you

You must ask your brother-in-law not to tell you where he invests your funds so that you do not need to report the investments in KICS

Question 5

Which of the following technology solutions might KPMG be permitted to provide to a restricted entity?

A technology solution that creates or records financial transactions

A technology solution that performs an ongoing monitoring function

A technology solution that automates processes to help client management analyze human resources information

A technology solution that automates internal controls over financial or risk management reporting

Question 6

You hold a mortgage loan on your primary residence from an SEC restricted entity. You were not a covered person at the time you obtained the loan, but you are about to become a covered person due to serving on the audit engagement team. What are the independence implications?

Your mortgage loan is considered grandfathered and you can continue holding it as long as you do not make any changes to the terms of the loan

Your mortgage loan cannot be grandfathered because it is on your primary residence

Your mortgage loan is considered grandfathered and is exempt from all independence restrictions

You must pay off your mortgage loan before you join the audit engagement team

Question 9

Which of the following must you consider when your spouse is seeking or negotiating a new employment role?

Whether the entity is restricted

What position your spouse is taking at the entity

Whether you are a covered person with respect to the entity

All answers are correct