[sdaccount]

Ok sorry.

Immediate family members include spouses, spouse equvilents, and dependents.

Close relatives include siblings, parents, non dependent children.

Do other relatives such as cousins, uncles, aunts, etc.

I would assume (and I don’t want to, hence my quesiton) that if I am on the audit team or a covered member, independence would be impaired if there was an audit on my cousins company or my best friends company even though my friend doesn’t fall under an immediate or close relative?

What if a covered member or a member or the audit team has an aunt that owns 60% of the company we are engaged to perform an audit? What if it was a 5% interest? Is independence impaired?

[rknight21]

it is for those reasons why indepence is such a big issue and the idea of independence goes beyond facts to apperance also. the rule is you have to be independent in fact and appearance…. in the cases you listed, an aunt owning 60% of a company is a clear indepence issue but maybe not 5%. If an uncle, cousin or aunt works in an accounting or finance role then yes indepedence is impaired also

[Author]

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