[xiaofeifei]

I have two questions regarding auditor’s independence

1. If CPA firm prepares auditing for the client many years, and the CFO of the client ask CPA firm to prepare his personal tax return. If CPA firm accept, it will impair independence or not?

2.CPA firm is doing auditing for the client and the CEO of the client waited to offer a significant gift to the auditor until the audit was finished. This will impair auditor’s independence or not?

Your help is greatly appreciated:)

[Spartans92]

To answer #1 YES. CPA cannot and should not prepare the tax return of the CEO or CFO. It is okay for board members or those charge with governance if they are only in an oversight role.

#2. Ugh. I never seen that before but I guess it could be either. If its after the audit it may not but if its significant it may still influence their judgement the following year? Its kinda hard to say without further information, I guess. But to be safe I would say yes it would impair independence.

BEC- PASS

[KaliKingz]

Q2, I believe the answer would be yes ( I can't say for certain)
My thought process is, that you have to be independent in fact and appearance. Would the auditor independent if they received a gift after the audit. It also looks like the auditor received contingent payment( I'm a tax man, so this would be considered incom, lol).

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