(TCO C) The following situation involves a possible violation of the AICPA\'s co
ID: 2342013 • Letter: #
Question
(TCO C) The following situation involves a possible violation of the AICPA's code of professional conduct. For this situation, (1) determine the applicable rule number from the code, (2) decide whether or not the code has been violated, and (3) briefly explain how the situation violates (or does not violate) the code. Your answer should be set up something like this: Rule # Violation? Yes or No. Provide a one- or two-line explanation. Sarah Marin, CPA, is a senior auditor in the San Francisco office of Coopers & Snoopers, CPAs. Sarah's father is employed as the controller of Line Electronics, a large publicly held company in Michigan. Line Electronics is one of Coopers & Snoopers audit clients. Neither Sarah nor the San Francisco office of Coopers &Snoopers is involved in the audit of Line Electronics.Explanation / Answer
The rule # is 1.200 i.e. Independence Rule. There is no violation of the Independence Rule with regards to the case being discussed.
It is not possible to discuss all relationships which threaten an auditor's independence. However, here Sarah or the San Fransisco office is not directly involved with the audit. Thus, there is no violation of the Independence Rule.
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