A covered member's investment in a mutual fund that owns stock in a firm being audited by the covered member is a direct financial interest resulting in the impairment of independence.

Question

Quizplus · Accepted Answer

An investment in a mutual fund is considered an indirect financial interest, and as long as the covered member does not have a material interest in the fund, it generally does not impair independence.

A Covered Member's Investment in a Mutual Fund That Owns