An example of an "indirect financial interest in a client" would be
A) ownership of less than 10% of the client's stock by the covered members spouse.
B) an ownership of less than 10% of the client's stock by a staff member who is not involved in the audit.
C) the covered member's ownership of a mutual fund that has an investment in the client.
D) All of the above are examples of an indirect financial interest in a client.

Question

Quizplus · Accepted Answer

The covered member's ownership of a mutual fund that has an investment in the client constitutes an indirect financial interest because the covered member does not directly own the client's stock, but the mutual fund that they own has an investment in it. Options A and B involve ownership of the client's stock, but it's less than 10%, so they do not constitute an indirect financial interest. Option D is incorrect because options A and B aren't considered indirect financial interests.

An Example of an "Indirect Financial Interest in a Client