If a member owns several shares of stock of a company during the first few months of the fiscal year under audit and then sells the shares before accepting the engagement,the firm does not violate the independence rules of the AICPA.

Question

Quizplus · Accepted Answer

The AICPA independence rules allow for the sale of shares before accepting an engagement, as long as the member no longer holds a financial interest in the client at the time of the engagement.

If a Member Owns Several Shares of Stock of a Company