Question

Mr. Bates, a partner in the Salt Lake City office, will have no client responsibilities of...

Mr. Bates, a partner in the Salt Lake City office, will have no client responsibilities of any kind relating to the Grantham Corporation audit (a private company audited by the Salt Lake City office). Is Mr. Bates a covered member who must be independent of Grantham Corporation?

Yes, because he is a partner in the firm

No, because Grantham is a private company

Yes, because he is a partner in the Salt Lake City office

No, because he provides no services to Grantham Corporation

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is

Yes, because he is a partner in the Salt Lake City office

Explanation

The SEC's definition of a "covered person" in the firm, with respect to an audit client includes the following:

Individuals on the audit engagement team

Personnel in the chain of command over members of the audit engagement team or concerning the conduct of the audit

any professionals who provide any professional service to an audit client

any other partner, principal, or shareholder from an office of the accounting firm that participates in a significant portion of the audit

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ms. Zadina is being considered for promotion to partner at her CPA firm. Her sister is...
Ms. Zadina is being considered for promotion to partner at her CPA firm. Her sister is the controller for Firm A, which is audited by Ms. Zadina’s CPA firm. Because of potential independence issues, Ms. Zadina does no work for Firm A. Ms. Lembke works in the same office as Ms. Zadina and is the managing partner of the CPA firm. Ms Lembke is also the lead partner on the CPA firm's largest client, Firm A. Which of the following...
1) Each of the following situations involves a possible violation of the rule on independence. For...
1) Each of the following situations involves a possible violation of the rule on independence. For each situation, (1) decide whether the Code of Professional Conduct has been violated, and (2) briefly explain how the situation violates (or does not violate) the Code of Professional Conduct. (a) Harry Brown is a partner in the Topeka office of Hedley & Co., CPAs. Harry's brother is employed in an audit-sensitive position by Jensen Appliances, a publicly held company in Kansas. Jensen Appliances...
One area of concern for the accounting profession for the past 20 years has been the...
One area of concern for the accounting profession for the past 20 years has been the proliferation of alternative practice structures. Potential problems exist because the audit side of the business may be influenced by the public entity that controls it. One such situation involves K&B, CPA Associates, and Cryden Business and Tax Services. Billy Kamen, CPA, has been a partner of K&B for more than 30 years. He thought he had seen it all in the accounting profession. The...
Facts: A Big Company (ABC) is one of several corporations owned entirely by XYZ corporation. XYZ...
Facts: A Big Company (ABC) is one of several corporations owned entirely by XYZ corporation. XYZ is publicly traded on a stock exchange. ABC makes an over-the-counter vitamin pill that has been very popular for many years. ABC engaged the services of a marketing firm, SellALot, LLC, to market this diet pill. Mr. Bragger, the member of the LLC with whom the CEO of ABC directly dealt, had previously told many of SellALot’s clients that he worked for ABC. SellALot...
Giving voice to values considers values to be the first pillar of the methodology. In his...
Giving voice to values considers values to be the first pillar of the methodology. In his position as advisory manager of the audit, Steve should be considering his commitment to what? a. Individual values b. Organizational values c. Ethical values d. Character-based values [The following information applies to the question.] Research Triangle Software Innovations is a software solutions company specializing in enterprise resource planning (ERP) business management software. Located in the Research Triangle Park, North Carolina, high-tech area, Research Triangle...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
Section 1: Subsidiary 1 – Carpets International (USA) Limited You are involved in the audit of...
Section 1: Subsidiary 1 – Carpets International (USA) Limited You are involved in the audit of Carpets International (USA) Limited, a subsidiary company of Las Vegas Group Corporation (USA) Limited. The client has presented you with the following draft Statement of Financial Position and Statement of Financial Performance as follows: Unaudited 11 months 30/11/X2 $’000 Audited 12 months 31/12/X1 $’000 Current Assets Cash 58 73 Receivables 4579 3928 Inventories 3624 2047 Total Current Assets 8261 6048 Non-current Assets Property, plant...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas...
You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm...
You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas competitors....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT