When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership
A) in all circumstances.
B) only for direct ownership.
C) only for indirect ownership.
D) under no circumstances.

Question

Quizplus · Accepted Answer

Materiality will affect independence only for indirect ownership, as direct ownership always results in impaired independence regardless of the materiality of the ownership interest.

When Determining Whether Independence Is Impaired Because of an Ownership