A staff member in a national CPA firm is not allowed to own stock in a client corporation even if the staff member is not involved in the client corporation's audit engagement under the AICPA's independence rule.

Question

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Under the AICPA's independence rule, a staff member in a national CPA firm is allowed to own stock in a client corporation as long as the staff member is not involved in the audit engagement of that client and the investment does not represent a significant financial interest relative to the staff member's net worth, thereby not impairing independence.

A Staff Member in a National CPA Firm Is Not