One of the partners in your audit firm holds one per cent of the shares in an audit client.This is not material to the partner's wealth.This is a breach of:

Question

Quizplus · Accepted Answer

Holding shares in an audit client can create a conflict of interest and impair independence, which is a breach of both APES 110 (Code of Ethics for Professional Accountants) and the Corporations Act 2001, as both set standards for auditor independence and conflict of interest.

One of the Partners in Your Audit Firm Holds One