An example of an 'indirect financial interest' in a client would be ownership of a client's stock by the auditor's:

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An indirect financial interest typically refers to a financial interest in a client that is held through a mutual fund, trust, or other intermediary that gives the holder no control over the choice of investments. Ownership of a client's stock by a nondependent grandparent would be considered an indirect interest because it does not directly influence the auditor's financial situation or decisions. Ownership by a spouse or dependent child is generally considered a direct financial interest due to the close financial relationship and potential for direct influence on the auditor's financial well-being.

An Example of an 'Indirect Financial Interest' in a Client