Current Employment

Question 1

What are the employment rules for partners or professional employees of an attest client:

Answer 1

Cannot work for a attest client as:

- director, officer, employee, promoter, underwriter, voting trustee, or a trustee for any profit sharing entity.

Question 2

What are the rule for professors and partners:

Answer 2

POPES may service as adjust faculty members at an educational institution that is an attest client as long as the following safeguards are in place:

• Does not hold a key position with the client
• Is not on the attest team
• Is not a PTI
• Is on a part-time and non-tenure basis
• Does not participate in employee benefit plan
• Does not assume management responsibilities or set policy

Question 3

Can a POPE join a board of a NFP organization?

Answer 3

YES, but it must be:

1) Must be honorary
2) They cannot vote and take management role
3) All externally circulated materials identify the position as honorary

Question 4

Can a POPE join a campaign treasurer?

Answer 4

Yes but

1) Can’t audit the campaign
2) Can’t audit the government unit which the candidate will head if successful
3) CAN audit the political party of the candidate

Question 5

Can a POPE be a member of a Federated Fund-Raising Organization?

Answer 5

Assume a POPE serves as a director or officer to a fund raising organization such as UNITED WAY.

If you united controls a charity you want to audit, there is a conflict of interest and breach of independence

Question 6

What are the rules of a former employment or association with an attest client?

Answer 6

Independence is impaired if a CM participates on the team or becomes a PTI when the engagement covers a period of when the person was employed by or associated with the audit client.

They could be a OPIO or 10 hour person

Question 7

How do you dissociation with audit client (former employers)

Answer 7

1) Ceasing to participate in all employee health and welfare benefit plans unless legally required
2) Ceasing to participate in employee benefit plans
3) Dispose of any direct or material indirect financial interest in the client
4) Loans to or from the client
5) Assess other relationships with the client and appearance of client