Other Associations and Relationships

Question 1

What is the test to determine whether gifts impair independence?

Answer 1

Clearly insignificant (to the recipient)

Question 2

Give an example of a common interest realty association.

Answer 2

Any of these: condominium, cooperative, homeowners’ association, planned unit development, timeshare development

Question 3

Which types of covered members may receive gifts from an attest client without particular worry about independence?

Answer 3

Others partners in the office and 10-hour people

Question 4

Can litigation by nonshareholder third parties create independence problems?

Answer 4

Yes.

Question 5

What kind of threat to independence can be created by litigation filed by an attest client against its outside auditor?

Answer 5

Adverse interest threat

Question 6

What is the test to determine whether entertainment impairs independence?

Answer 6

Reasonable in the circumstances.