In short
Under the American Institute of Certified Public Accountants' independence rules, a covered member is someone whose interests can impair independence, such as an attest engagement team member or a person able to influence the engagement.
Key takeaways
- It also includes partners and managers who provide 10 or more hours of nonattest services to the client, and partners in the lead partner's office.
- The firm itself and its benefit plans are covered members.
- Restrictions on financial interests extend to a covered member's immediate family.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which situation most clearly impairs a covered member's independence with respect to an audit client?