Rule 101 of the AICPA Code of Professional Conduct (independence) considers which of the following situations a violation of the code?
- A partner in the New York office is married to the president of a client for which the firm\'s Connecticut office performs audit services. The New York partner does not perform services out of or for the Connecticut office, cannot exercise significant inf
- An audit partner holds an investment in a well-diversified mutual fund which sometimes makes immaterial investments in his audit clients. The auditor\'s investment in the mutual fund is not material to the auditor or the mutual fund. The auditor has no in
- An audit partner has a brother who owns a 20% interest in an audit client, which is material to the brother\'s net worth. The partner participates in the audit engagement and is aware of his brother\'s investment.
- All of the possible answers are violations of Rule 101 of the AICPA Code of Professional Conduct.
Accounting
C. An audit partner has a brother who owns a 20% interest in an audit client, which is material to the brother's net worth. The partner participates in the audit engagement and is aware of his brother's investment.
need an explanation for this answer? contact us directly to get an explanation for this answerExplanation: Since the auditor's brother owns a material interest in an audit client and the auditor knows of the brother's investment independence is impaired.