A member has been asked to cosign checks with a client employee while the company president is on vacation. Which statement about the application of the AICPA independence rules to this situation is correct?

A) Because the member will only be cosigning checks, independence is not threatened.

B) Because the member is a cosigner for a short time, independence is not threatened.

C) Because the member has entered into a joint venture with the client, independence is impaired.

D) Because check-signing is a management function, independence is impaired.

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4 September, 16:12

A member has been asked to cosign checks with a client employee while the company president is on vacation. Which statement about the application of the AICPA independence rules to this situation is correct?

A) Because the member will only be cosigning checks, independence is not threatened.

B) Because the member is a cosigner for a short time, independence is not threatened.

C) Because the member has entered into a joint venture with the client, independence is impaired.

D) Because check-signing is a management function, independence is impaired.

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Answers (1)

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Colton · Answer 1

D

Explanation:

From the above scenario, the statement about the application of the AICPA independence rules to this situation which is most correct is:

D. Because check-signing is a management function, independence is impaired.

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