For each of the following situations, indicate whether a CPA who is a partner in the one office CPA firm is "Independent" with respect to the client, by choosing "yes" or "no." Individual CPA's situation The CPA's nondependent child owns an immaterial direct financial interest in the client. b. The CPA's spouse owns an immaterial direct financial interest in the client. c. The CPA's brother is the controller of the client. d. The CPA's father is a salesman for the client. e. The CPA's nondependent mother owns an immaterial direct financial interest in the client. f. The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock worth, in total $100, in an audit client of the CPA. 9- The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that audit engagement. h. The CPA owns an immaterial amount of stock in a firm audit client, she works on that audit engagement. i. A CPA's father owns a material investment in a firm audit client, she works on the engagement as a partner but is not aware of the investment. j. A CPA's brother works part-time in the warehouse of an audit client. Independent? Ves No

For each of the following situations, indicate whether a CPA who is a partner in the one office CPA firm is "Independent" with respect to the client, by choosing "yes" or "no." Individual CPA's situation The CPA's nondependent child owns an immaterial direct financial interest in the client. b. The CPA's spouse owns an immaterial direct financial interest in the client. c. The CPA's brother is the controller of the client. d. The CPA's father is a salesman for the client. e. The CPA's nondependent mother owns an immaterial direct financial interest in the client. f. The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock worth, in total $100, in an audit client of the CPA. 9- The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that audit engagement. h. The CPA owns an immaterial amount of stock in a firm audit client, she works on that audit engagement. i. A CPA's father owns a material investment in a firm audit client, she works on the engagement as a partner but is not aware of the investment. j. A CPA's brother works part-time in the warehouse of an audit client. Independent? Ves No

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

For each of the following situations, indicate whether a CPA who is a partner in the one office CPA firm is "Independent" with respect to
the client, by choosing "yes" or "no."
Individual CPA's situation
The CPA's nondependent child owns an immaterial direct financial interest in the client.
b. The CPA's spouse owns an immaterial direct financial interest in the client.
c. The CPA's brother is the controller of the client.
d. The CPA's father is a salesman for the client.
e. The CPA's nondependent mother owns an immaterial direct financial interest in the client.
f.
The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock
worth, in total $100, in an audit client of the CPA.
The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that
audit engagement.
h.
The CPA owns an immaterial amount of stock in a firm audit client, she works on that audit
engagement.
9-
i.
A CPA's father owns a material investment in a firm audit client, she works on the engagement as
a partner but is not aware of the investment.
j. A CPA's brother works part-time in the warehouse of an audit client.
Independent?
Ves
No

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