Section 290 of the Code of Ethics prohibits specific members of an audit firm from owning any stock or having indirect material interest in audit clients. This includes all but which of the following?

Question

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Section 290 of the Code of Ethics specifically restricts members of the audit team, their immediate family, and partners in the office who might influence the audit engagement from owning stock or having a material interest in audit clients. However, it does not extend this prohibition to staff members in the office who are not involved in the engagement, as their involvement is considered too indirect to influence the audit outcome.

Section 290 of the Code of Ethics Prohibits Specific Members