CPA Yolanda is the engagement partner on the Casa Construction Company (CCC) audit supervised from the Santa Fe office of the firm. Yolanda owns 100 shares of CCC.
Yes; a member of the engagement team cannot hold a direct financial interest
CPA Yolanda sold the 100 CCC shares to CPA Javier, who is another partner in the Santa Fe office but who is not involved in the CCC audit.
Yes; no other partner in the Santa Fe Office (covered persons) cannot own direct financial interest in CCC
CPA Javier's son sold the shares to Javier's father.
No; a father is a close family member not
immediate
family, so the financial interest does not impair independence
CPA Javier's father was happy to combine the 100 CCC shares with shares he already owned because now he owns 25 percent of CCC and can control many decisions of the board of directors.
yes; controlling interests in audit clients when held by close family members of covered persons impairs independence
Posts the client-approved entries to a clients trial balance
No
Authorize the client's customer credit applications
Yes
Use CPA's information-processing facilities to prepare the client's payroll and generate checks for the client treasurer's signature
no
Sign the client's quarterly federal payroll tax return
yes
advise client management about the application or financial effect of provisions in an employee benefit plan contract
no
Have an emergency signature authority to cosign cash disbursement checks in connection with a client's hospital benefit plan
yes