Jennifer Nelson,CPA,has posted the general ledger and has maintained the financial records of Quinn Corporation.As a part of his responsibilities he has recorded journal entries and made closing entries without consulting Quinn's management.Which of the following best summarize the AICPA and SEC views as to the following question: Is audit independence impaired? $$\begin{array} { l c c }
\text { Item} & \text { AlCPA } & \text { SEC } \
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D } & \text { No } & \text { No }
\end{array}$$

Question

Jennifer Nelson,CPA,has posted the general ledger and has maintained the financial records of Quinn Corporation.As a part of his responsibilities he has recorded journal entries and made closing entries without consulting Quinn's management.Which of the following best summarize the AICPA and SEC views as to the following question: Is audit independence impaired? $$\begin{array} { l c c } 
\text { Item} & \text { AlCPA } & \text { SEC } \
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D } & \text { No } & \text { No }
\end{array}$$

Quizplus · Accepted Answer

Both the AICPA and SEC have strict rules regarding auditor independence, which includes not making management decisions or taking on management responsibilities. By recording journal entries and making closing entries without consulting Quinn's management, Jennifer Nelson has effectively taken on management responsibilities and impaired their audit independence. Therefore, both AICPA and SEC would view this situation as impairing audit independence. Option A correctly reflects this view.

Jennifer Nelson,CPA,has Posted the General Ledger and Has Maintained the Financial