審計學

Which of the following circumstances most accurately reflects compliance with auditors' professional ethics and independence standards?

① Wilson Company is audited by the Denver office of Allen CPAs. A staff assistant who prepares Wilson Company's tax returns would be unlikely to be considered a "covered member" under the independence standard.

② With respect to a nonpublic audit client in the Chicago office of a national CPA firm, it is unlikely the CPA firm's independence is impaired if a partner in the Pittsburgh office is also the vice president of finance for this audit client.

③ A CPA sole practitioner purchased stock in a client corporation and placed it in a trust as an educational fund for the CPA's minor child. The trust securities were not material to the CPA but were material to the child's personal net worth. The independence of the CPA is considered to be impaired with respect to the client because the stock would be considered an indirect financial interest that is material to the CPA's child.

④ Connor & Sullivan CPAs has one office. The fact that a client owes the CPA firm for two prior years' audit fees is unlikely to impair independence with respect to this audit client.

⑤ A partner of Bradly & Sonya CPAs has an investment in a mutual fund that has a direct interest in a client. It is unlikely that the firm's independence is impaired with respect to this audit client.

⑥ The covered member's spouse owns an immaterial amount of shares of common stock in a client. The covered member would be considered independent when performing this client's financial statement audit for the year ended December 31, 20X4.

⑦ A partner of Brandon & Villita CPAs refused to provide a client with copies of working papers the client prepared for the auditor. This is unlikely to be considered an act discreditable to the accounting profession.