Question

The independence of a covered member is impaired if, during the period of the professional engagement, (s)he had any financial interest in the client.

a-true
b-false

Answer 1

The independence of a covered member is impaired if they had any financial interest in the client.

Step-by-step explanation:

The statement 'The independence of a covered member is impaired if, during the period of the professional engagement, (s)he had any financial interest in the client' is true.

Independence is a fundamental principle in the accounting profession. A covered member, such as an auditor or accountant, must maintain independence from their clients in order to provide unbiased and objective opinions. Having a financial interest in a client can compromise this independence, as it may create a conflict of interest.

For example, if an auditor owns shares in the client's company, they may be more inclined to give a favorable opinion on the client's financial statements to protect their investment, rather than providing an objective assessment.

Answer 2

The independence of a covered member is impaired if they had any financial interest in the client.

Step-by-step explanation:

The statement 'The independence of a covered member is impaired if, during the period of the professional engagement, (s)he had any financial interest in the client' is true.

Independence is a fundamental principle in the accounting profession. A covered member, such as an auditor or accountant, must maintain independence from their clients in order to provide unbiased and objective opinions. Having a financial interest in a client can compromise this independence, as it may create a conflict of interest.

For example, if an auditor owns shares in the client's company, they may be more inclined to give a favorable opinion on the client's financial statements to protect their investment, rather than providing an objective assessment.

Answer 3

The independence of a covered member is impaired if they had any financial interest in the client.

Step-by-step explanation:

The statement 'The independence of a covered member is impaired if, during the period of the professional engagement, (s)he had any financial interest in the client' is true.

Independence is a fundamental principle in the accounting profession. A covered member, such as an auditor or accountant, must maintain independence from their clients in order to provide unbiased and objective opinions. Having a financial interest in a client can compromise this independence, as it may create a conflict of interest.

For example, if an auditor owns shares in the client's company, they may be more inclined to give a favorable opinion on the client's financial statements to protect their investment, rather than providing an objective assessment.