[Anonymous]

Hi,

Does anyone have any good advice or memory aids on how to prepare for questions on Independence issues regarding an accountant and the client? Besides not having a direct or material indirect financial interest in the client, there are so many other situations that could arise that could affect independence. I.e. type of services performed, being a former employee of the company currently being audited. Does anyone have any good resources or tips they used to prepare for these type of questions?

Thanks,

[ruggercpa2b]

I don't remember if there are any memory aids to remember independence. What helps me with remembering certain things when I study is rewriting them. Since you know that independence is an issue, I would have a sheet of paper where you write down the different situations that an auditor is independent. And then as you study other areas and something related is covered you can add it and then combine all your notes. I struggled with ratios and each night before going to bed I would rewrite them from memory.

You can take a blank piece of paper during the day at work and just write out from memory the different situations that an auditor is independent. If you draw a blank then look it. You will be surprised at how much you will remember that information. Jeff is right by saying just to rewrite things because it helps make it stick.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Anonymous]

Also, don't over think it. Independence is one that if you apply logic then you'll get it right most of the time. Just ask yourself if you'd feel impaired in the given situation.

[CPA soon]

Compilation:

No Opinion/No Assurance/No independence Required

Review:

No Opinion/Limited-Negative Assurance

Independence Required

Consider Reasonableness and Consistency.

Do not corroborate management assertions w/ other evidence

Agreed Upon Procedures:

Limited Use (Statement of Limitation required); Disclaims Positive opinion of F/S

Independence Required. Written Assertions not Required.

Provides list of procedures and related findings; Specific amounts not entire F/S.

Examination/Audit:

Positive/Reasonable Assurance

Independence Required

Forecasts (General & Limited Use); Projections (Limited Only):

Compilation/Examination/Agreed Upon Procedures allowed but NOT Reviews

Management remains responsible

Any employment for Client or Firm of the others employee, must wait one year/audit (Usually CEO/CFO)

Any employment in the talks, the potential employee needs to be taken off audit until it is determined whether he will work for client or not.

Key Positions? Always determine that first.

Hope that helps!

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Author]

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