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Auditing & Assurance Services 6th Edition by Timothy Louwers
Edition 6ISBN: 978-0077862343Auditing & Assurance Services 6th Edition by Timothy Louwers
Edition 6ISBN: 978-0077862343 Exercise 532
CPA Kara Rambo is the auditor of Ajax Corporation. Her audit independence will not be considered impaired if she
A) Owns $1,000 worth of Ajax stock.
B) Has a husband who owns $1,000 worth of Ajax stock.
C) Has a sister who is the financial vice president of Ajax.
D) Owns $1,000 worth of the stock of Pericles Corporation, which is controlled by Ajax as a result of Ajax's ownership of 40 percent of Pericles' stock, and Pericles contributes 3 percent of its total assets and income in Ajax's financial statements.
A) Owns $1,000 worth of Ajax stock.
B) Has a husband who owns $1,000 worth of Ajax stock.
C) Has a sister who is the financial vice president of Ajax.
D) Owns $1,000 worth of the stock of Pericles Corporation, which is controlled by Ajax as a result of Ajax's ownership of 40 percent of Pericles' stock, and Pericles contributes 3 percent of its total assets and income in Ajax's financial statements.
Explanation
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• Independence is impaired by the attrib...
Auditing & Assurance Services 6th Edition by Timothy Louwers
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