[hiphopbaby]

I am so confused about the independence rule for parent & subsidiary. Can someone please help me to clarify which impairs the independence?
Can auditor audit parent company when the auditor have immaterial stock of subsidiary company ?
Can auditor audit subsidiary company when the auditor has immaterial stocks of parent’s company?

[Ajay Rangarajan]

When it comes for independence if u hold direct financial interest in any company irrespective of material or immaterial then independence is impaired ….only for indirect financial interest material is considered..if u have immaterial indirect financial interest then independence is not impaired..hope I have answered you …

AJ

[Author]

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