IFAC vs AICPA Independence Flashcards Preview

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Flashcards in IFAC vs AICPA Independence Deck (6):
1

Gifts Received test

IFAC - Trivial and Inconsequential

AICPA - Reasonable in the circumstances

2

Tax return preparation

Both - Transmitting and preparing Tax returns is not a threat as long as Management takes responsibility for the returns and any Judgements made

3

Providing Bookkeeping / payroll services

IFAC - Only in an emergency situation

AICPA (General Requirements for Non Attest Services) - Permitted as long as management makes all "Final" Decisions.

4

Immaterial Indirect Financial Interest held by an intermediary (Mutual Fund)

IFAC - Member unable to influence investment decisions

AICPA - Member owns less than 5% in a Diversified mutual fund

5

Unpaid feeds

Both - Impairs independence if overdue for more than 1 year

6

Audit firm acts in a Advocacy Role. ex. Arbitrator

IFAC - Allowed if 1) Not Material and 2) Appropriate safeguards are applied

AICPA - Impairs independence