Covered Member Question: Audit/Ninja Notes

CPA Exam Review CPA Exam Forum NINJA CPA Review NINJA Notes Covered Member Question: Audit/Ninja Notes

This topic contains 3 replies, has 2 voices, and was last updated by GitRDone2017 GitRDone2017 2 years, 7 months ago.

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  • #1272922

    mylifeisover
    Participant

    I take my test Tuesday and I am just trying to get a good hold of this

    1) In the Ninja Notes it says “Covered Member's immediate family cannot own more than 5% stock” …. so I am assuming that this interest in stock is indirect and it is not material to spouse/dependent networth? I thought any direct interest would impair independence from covered member or immediate family

    2) What about Close Relatives investments? I understand that if a close relative works in a “Key Position” than independence is impaired but what if a non-dependent child/sibling/parent owns 10% of stock in a client that a covered member audits, is independence impaired? or what about 2%

    I will appreciate any feedback/guidance

    ROAD TO CPA

    AUD - 59, 73, 86
    BEC - 72
    FAR -
    REG -

    #1273119

    mylifeisover
    Participant

    BUMP!!!!!!!!!!

    ROAD TO CPA

    AUD - 59, 73, 86
    BEC - 72
    FAR -
    REG -

    #1273684

    mylifeisover
    Participant

    I guess no one knows 🙁

    ROAD TO CPA

    AUD - 59, 73, 86
    BEC - 72
    FAR -
    REG -

    #1273773
    GitRDone2017
    GitRDone2017
    Participant

    I found the section you are referring too. Page 7 of section VI of Ninja book. Might I suggest going back to page 6 where the paragraph starts talking about independence impairment, if you read the paragraph where it begins, it may make a little more sense. I am not sure what to say about the close relative investments, still drinking first cup of coffee, haha!

    AUD - 82
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    "confidence is going after Moby Dick in a rowboat and taking the tartar sauce with you" ~ Zig Ziglar
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