Discussion 8; Auditing

Visit the AICPA website’s “Code of Professional Conduct.” Find the Independence Rule and its related interpretations in Part 1 of the Code of Professional Conduct. Research the relevant rules, interpretations, and ethics rulings to answer the following questions. Explain your reasoning. Remember to reference your sources in APA-format.

Would independence be considered impaired if a member joined a trade association that is an entity of the firm?
A member provides extensive advisory services for an entity. In that connection, the member attends board meetings; interprets financial statements, forecasts, and other analyses; and counsels on potential expansion plans and on banking relationships. Would independence be considered impaired under these circumstances?
If a member signs or cosigns checks issued by a debtor corporation for a creditors’ committee in control of the debtor corporation, which will continue to operate under its existing management, would independence be impaired with respect to the debtor corporation?
A member has been designated to serve as an executor or trustee of the estate of an individual who owns the majority of an entity’s stock. Would independence be considered impaired with respect to the entity?
A member serves as a director or officer of a United Way or similar fund-raising organization. Certain local charities receive funds from the organization. Would independence be considered impaired with respect to such charities?
An entity of the member’s firm has not paid fees for previously rendered professional services. Would independence be considered impaired for the current year?
For each discussion, write one substantive post including how the topic is interpreted or applied including research from the textbook and at least one outside source. For full credit, you must also include an APA in-text citation and reference for at least one outside source other than the textbook. Length is relative (some students can answer briefly while others take up more words), instead focus on providing a well thought-out post.

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