{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

plainenglish - AICPA Plain English Guide to Independence...

Info icon This 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?
Image of page 1

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

View Full Document Right 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
Image of page 2
May my firm design or implement an information system 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 Where can I find further assistance with my independence questions?
Image of page 3

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern