Independence Issues 1 Flashcards
Firm has a depository account in a bank that is attest client and going through some financial difficulties and Covered member has $250,000 in depository account.
No
Covered member has $260,000 in depository account in a bank that is an attest client and going through some financial difficulties. The 10,000 that is at risk in not material to Covered member.
No
Covered member had $300,000 in depository account in a bank that is an attest client. Client withdrew 50,000 within 30 days of assignment of the attest work.
No
The auditor has a brokerage account that holds both U.S. securities and assets other than cash or securities.
Yes
The auditor has a brokerage account that holds U.S. securities in excess of Securities Investor Protection Corporation coverage limits but loss on this investment is not material to Covered member.
No
The auditor has a brokerage account that includes assets other than cash or securities.
Yes
The auditor has a cash balance in a brokerage account that is fully covered by the Securities Investor Protection Corporation.
No
Member Spencer maintains a brokerage account at TYD Brokers, an attest client. To be independent, Spencer need ensure only that TYD renders services to him on the same terms and conditions as to other customers.
No
Member Spencer maintains a brokerage account at TYD Brokers, an attest client. To be independent, Spencer need ensure only that any assets he has in the account that are subject to risk of loss are immaterial to his net worth.
No
Covered member owns an insurance policy that does not contain an investment option and was issued under normal terms, procedures, and requirements.
No
?
Covered member owns an insurance policy with an investment option, and she invested a small amount in the ABC Mutual Fund, even though Kim is a covered member for purposes of ABC, which is an audit client of her firm.
?
Member Spencer maintains a brokerage account at TYD Brokers, an attest client. To be independent, Spencer must ensure both that TYD renders services to him on the same terms and conditions as to other customers and that any assets he has in the account that are subject to risk of loss are immaterial to his net worth.
Yes
The Patton Accounting Firm and one of its partners, Tilly, have depository accounts at the ABC Bank. ABC has just approached Patton about becoming the bank’s audito. Would there be an independence problem if Patton became ABC’s auditor? ABC is in robust financial health and Tilly’s account is not fully insured, but the uninsured amount is not material to her financial situation.
No
Member Spencer maintains a brokerage account at TYD Brokers, an attest client. To be independent, Spencer need ensure only that any assets he has in the account that are subject to risk of loss are immaterial to his net worth.
No
The Patton Accounting Firm and one of its partners, Tilly, have depository accounts at the ABC Bank. ABC has just approached Patton about becoming the bank’s auditor. Would there be an independence problem if Patton became ABC’s auditor? ABC is in robust financial health and Tilly’s account is fully insured.
No
