AICPA 4-18

Card Set Information

Author:
Anonymous
ID:
80371
Filename:
AICPA 4-18
Updated:
2011-04-18 12:58:44
Tags:
AICPA
Folders:

Description:
AICPA
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  1. 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
  2. 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
  3. 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

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