Which of the following relationships do not impair CPA-auditor independence?
A) Financial relationships with the client
B) Business relationships with the client
C) Family relationships whereby an immediate family member holds a decision-making position with the client
D) Relationships where a best friend serves in a financial reporting oversight role with the client

Question

Quizplus · Accepted Answer

Option D does not impair CPA-auditor independence as long as the best friend is not a close relative like a spouse, child or sibling. However, options A, B and C impair independence since they involve direct financial, business or family relationships with the client.

Which of the Following Relationships Do Not Impair CPA-Auditor Independence