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AICPA 4-13
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Litigation that would likely impair independence:
If the client alleges audit deficiencies and takes or threatens legal action
If you take legal action against the client for fraud or deceit
Litigation that would not impair independence
If both:
Threatened legal action does not relate to the performance of the attest engagement
Amount involved is not material to you or the client
Indemnification - Independence is not impaired
Clause in the engagement indicating that the client would release you from liability and costs resulting management knowingly misrepresenting
Indemnification - independence is impaired
Client asks you to agree to indemnify them for costs related to legal action that arises directly/indirectly from client acts
Cannot have a contingent fee if you perform any of these services:
Audit/review of financial statements
Compilation of a financial statement when you don't disclose a lack of independence
Examination of prospective financial statements
No tax returns or tax refunds
What is a commission?
A fee you receive for recommending someone's products/services
If you're in public practice and performing attest services what may you not do for a commission?
Recommend someone's products/services
Recommend a client's products/services
Perform services for your client
Author
Anonymous
ID
79356
Card Set
AICPA 4-13
Description
AICPA Quiz
Updated
2011-04-13T16:17:26Z
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