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Your spouse owns 1000 shares in Martin Limited, a successful publicly traded company. After graduating from...

Your spouse owns 1000 shares in Martin Limited, a successful publicly traded company. After graduating from university, you are hired by Mason and Company LLP Chartered Accountants. Two months after you start working, you find out that Mason and Company LLP is the auditor for Martin Limited. You suspect that you will be part of the team assigned to audit Martin Limited. Should you tell the partners of the accounting firm that your spouse own shares in this company? Why or why not?

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Answer #1

I do not have to tell the partners of the accounting firm that my spouse owns shares in Martin Limited, a successfully publicly traded company. It is so because, i am not an auditor or a partner of Mason and Company LLP. I am just hired as an employee, post my graduation. If i were a Qualified CPA being an Auditor or the partner in Mason and Company LLP, then my independence would have come into picture. Though i will be a part of the team assigned to audit, Martin Ltd, being an employee, the Auditing standards wont be binding on me unlike in case of an auditor or partner.

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