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AICPA 4-18
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When does the SEC consider independence impaired?
You are not independent in fact
A reasonable investor would conclude that you would not be capable of acting without bias
SEC may look to four basic principles in evaluating independence
Does the relationship create a mutual or conflicting interest?
Does it place the firm in a position where it will audit its own work
Does the firm effectively act as management/employee of the client
Does it place the firm in a position where it acts as an advocate for the client
Difference between AICPA and SEC rules concerning jointly-held investments
AICPA
: impaired if investment is material to covered member's net worth
SEC
: materiality doesn't matter
Author
Anonymous
ID
80371
Card Set
AICPA 4-18
Description
AICPA
Updated
2011-04-18T16:58:44Z
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