Current employment

Question 1

If an officer of an attest client leaves the client and joins the firm, which position might the person occupy that would inevitably impair independence?

Answer 1

Team member or someone in a position to influence

Question 2

Name three prohibited positions that partners or professional employees may not hold with an attest client.

Answer 2

Any of these positions: director, officer, employee, promoter, underwriter, voting trustee, trustee for any pension or profit-sharing trust of the client’s, or any equivalent position

Question 3

Who in an attest firm may not hold prohibited employment positions with an attest client?

Answer 3

Partners or professional employees

Question 4

If a partner or professional employee serves on a citizen’s advisory committee studying possible changes in the form of a county government, may the firm still audit the county?

Answer 4

Yes.

Question 5

Under what condition may a partner or professional employee be a director of an organization that receives funding from a foundation that exists solely to raise funds for the organization and audit the foundation?

Answer 5

The directorship is clearly honorary.

Question 6

When do independence concerns arise when an attest client employee joins an attest firm?

Answer 6

When the person was employed as an officer, director, promoter, underwriter, voting trustee, or trustee for a pension fund or profit-sharing fund of the client (or an equivalent position)

Question 7

Under what conditions might a director leaving an attest client join a firm as an other partner in the office or a 10-hour person?

Answer 7

The director dissociates fully from the client.

Question 8

Which three safeguards need to be in place so that a partner or professional employee may serve as a director of a nonprofit?

Answer 8

1. )The position is clearly honorary.
2. )The position is represented as honorary.
3. )The partner or professional employees may not vote or take a management role.