[I_can_do_it_PDX]

Case 1—If I am an auditor and my spouse has direct immaterial interest in the company I am auditing. Does this make my independence impaired?

Case 2–If my uncle has direct material interest?

I am really confused on this matter and I would really appreciate if someone can clarify this for me!

My understanding is that the auditor must be free of direct/indirect material or immaterial interest, but wasn’t sure with your spouse and other relatives.

Any help will be appreciated!

Thank you!

REG(82) BEC(78) AUD(67, retake 10/17) FAR(11/28)

[Swati]

Case 1 – Yes that would affect your independence.The immediate family of an auditor (a spouse and any dependents) can have no financial interest in an audit client, but can hold employment as long as there is no influence on the financial statements.

Case 2 – A close relative of an auditor (a parent, sibling, or child who is not a dependent) can have a financial interest in an audit client as long as it is not material to that individual and can work for the client as long as there is not a significant relationship to financial statements.

Hope this helps.

[Florida_Candidate]

so I took AUD a month ago and yet I don't remember this. How terrible is that??? LOL

FAR-91 (7/29)
AUD-99 (8/23)
BEC-90 (10/1)
REG-99 (11/3)

[Anonymous]

Yes Florida :)), I am studying for AUD and believe me, I had to think a little bit about this. How scary is that??

[I_can_do_it_PDX]

@Swati—Thank you! I really appreciate it! @Florida, wow it is amazing that you got a 99 in AUD!

REG(82) BEC(78) AUD(67, retake 10/17) FAR(11/28)

[Author]

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