plainenglish

plainenglish - AICPA Plain English Guide to Independence...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
AICPA Plain English Guide to Independence July 1, 2009 TABLE OF CONTENTS NOTICE TO READERS PREFACE Purpose of this guide Conventions and key terms used INTRODUCTION What is independence? What should I do if no specific guidance exists on my particular independence issue? When is independence required, and who sets the rules? In addition to the AICPA, who else sets independence rules? APPLYING THE RULES—COVERED MEMBERS AND OTHER FIRM PROFESSIONALS How do the independence rules apply to me? Do any of the rules apply to me if I am not a covered member? What if I was formerly employed by a client, or I was a member of the client’s board of directors? What rules apply if I am considering employment with an attest client? What if I accept employment or a board position with an attest client? APPLYING THE RULES—FAMILY MEMBERS When is my family subject to the rules? What about my other close relatives?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FINANCIAL RELATIONSHIPS When do my (or my family’s) financial interests impair independence? What if my immediate family or I receive a financial interest as a result of an inheritance or a gift? What are the rules that apply to my mutual fund investments (and those of my family) if my firm audits those mutual funds? Which rules pertain to my mutual fund investments (and those of my family) if my firm audits companies held in those mutual funds? May I have a joint closely held investment with a client? May my family or I borrow money from or lend money to a client? May I have a brokerage account with a client? May I have a bank account with a client? May I have an insurance policy with a client? May I give gifts or entertainment to or accept gifts or entertainment from a client? BUSINESS RELATIONSHIPS Which business relationships with a client impair independence? NONATTEST SERVICES Which rules describe the nonattest services that my firm and I may or may not provide to attest clients? What are the rules concerning performing bookkeeping services for a client? May my firm provide internal audit assistance to a client? May my firm provide valuation, appraisal, or actuarial services to a client? May my firm provide investment advisory services to a client? AICPA Plain English Guide to Independence July 1, 2009 2
Background image of page 2
for a client? FEE ISSUES What types of fee arrangements between my firm and a client are prohibited? When are referral fees permitted? Is independence affected when a client owes the firm fees for professional services that the firm has already provided? Does being compensated for selling certain services to clients affect my independence? Does it matter if a significant proportion of my firm’s fees come from a particular client? FURTHER ASSISTANCE
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 40

plainenglish - AICPA Plain English Guide to Independence...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online