[Anonymous]

Hey guys I have my audit retake in a few hours but a quick question. Does going from the client to the cpa firm impair independence/going from the cpa firm to the client require a one year cool off, or do I have this backwards?

[Not a Quitter]

I'm pretty sure the cool off if for leaving a firm to go work for a client.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Not a Quitter]

I'm pretty sure the cool off if for leaving a firm to go work for a client.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Anonymous]

That's how it reads to me too.

But the flip side, going from a client to a cpa firm impairs independence?

[Anonymous]

That's how it reads to me too.

But the flip side, going from a client to a cpa firm impairs independence?

[mystical guy]

If either way, if it's a key financial position, the 1 year cool is needed and the threat to independence need to be removed (e.g. participating in some pension plans can impair independence so the person would need to stop participating).

However, going to a lower position, e.g. Staff Accountant, where there is no influence on the audit engagement, and there are specific rules for ensuring that independence is maintained (in either client or the audit firm), will not impair independence.

Don't worry, they won't confuse you. Look for the key words ..”key financial position” for instance…and the 1 year cool off period

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[mystical guy]

If either way, if it's a key financial position, the 1 year cool is needed and the threat to independence need to be removed (e.g. participating in some pension plans can impair independence so the person would need to stop participating).

However, going to a lower position, e.g. Staff Accountant, where there is no influence on the audit engagement, and there are specific rules for ensuring that independence is maintained (in either client or the audit firm), will not impair independence.

Don't worry, they won't confuse you. Look for the key words ..”key financial position” for instance…and the 1 year cool off period

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[Author]

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