[Manuelo]

Hey guys so I did some research and found out that parents, siblings and nondependent kids are not covered members. Is that true? I always thought they were…

So let’s say your dad works in a key position of client company. That will not impair indepence, right?

But if your spouse does, it will impair indepence because spouses are considered immediate family members.

Have I got the right idea?

[Anonymous]

studying for AUD, are we?

in both situations your independence is impaired.

as far as family is concerned, covered members come in 2 varieties: immediate family and close relatives.

immediate family is your spouse and dependent children.

close relatives are your parents, siblings, and non-dependent children.

edit:

that above bit was from memory. apparently i didnt do too bad (a good sign considering im currently studying for AUD). if you want a definition straight from the horses mouth check here: https://www.aicpa.org/Research/Standards/CodeofConduct/Pages/et_92.aspx

[Zaq]

If a close relative works for a company that you're auditing, independence is impaired.

However, I recall Tim Gearty saying something that if you are unaware of this fact in regards to close relatives then independence is not impaired. The example was a father working in a key position that you audit, but you not knowing this specific detail which would be a safeguard against independence.

Someone correct me if I'm off track.

FAR: 50, 76!
REG: 74... (ouch baby, very ouch), 76!
AUD: 65, 91!?
BEC: 80! Aaaand doneskies!

May 2012 to August 2013. Can't believe it's over.

[Author]

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