The AICPA's Code of Professional Conduct defines an indirect financial interest as an investment of one percent or less of a client's organization,and because the amount is so small it is considered immaterial.

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An indirect financial interest is defined by the AICPA's Code of Professional Conduct as a financial interest in an entity that is associated with a client, such as through an investment in a mutual fund that owns the client's stock, but the definition does not specify a percentage threshold like one percent to deem it immaterial. Materiality is determined by the circumstances and the relationship between the entities, not by a fixed percentage.

The AICPA's Code of Professional Conduct Defines an Indirect Financial