ndependence check. On the following scenarios, determine if the auditor involved has his/her independence impaired. Cite the evidence of independence impairment, identify the threat type, and what safeguard he/she can apply to eliminate or reduce the threat to acceptable low level.
. Independence check. On the following scenarios, determine if the auditor involved has his/her independence impaired. Cite the evidence of independence impairment, identify the threat type, and what safeguard he/she can apply to eliminate or reduce the threat to acceptable low level.
• Ben Santos works as a manager in the Manila office of an international CPA firm. His father has just taken a position as a purchasing agent for one of the CPA firm's Manila clients. Has Ben's independence has been impaired? Has the CPA firm's independence been impaired if ben does not work on the audit? Why or why not?
• Three months ago, a national CPA firm hired Gary Angeles to work as a staff auditor in its Cebu office. Yesterday, Angeles' father was hired to be the chief financial officer of on the CPA firm's Cebu clients. Has the independence of the CPA firm with respect to this client been impaired?
• Alex Ybanez is a CPA who often serves as an expert witness in court cases. It is proper for Ybanez to receive compensation damage suit based on the amount awarded to the plaintiff? Discuss.
• Lea Sanchez, wife of Juan Sanchez, CPA, is a life insurance agent. May Juan Sanchez refer audit clients needing officer life insurance to Lea Sanchez, or to another life insurance agent who will share a commission with Lea Sanchez? Explain
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