Commercial Pilot Licence (CPAER) – Canada · Question
An auditor's sibling holds a material financial interest in an audit client. Which of the following best describes the implication for the auditor's independence?
According to CPA Canada independence standards, a direct or material indirect financial interest in an audit client by a close relative (such as a sibling) gene
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Question: An auditor's sibling holds a material financial interest in an audit client. Which of the following best describes the implication for the auditor's independence?
Answer options: ✅ Independence is impaired, and the auditor cannot be part of the audit team.
- Independence is not impaired if the sibling is not in a position to influence the financial statements.
- Independence is only impaired if the auditor is aware of the sibling's interest.
- Independence is impaired only if the financial interest is direct.
Correct answer: Independence is impaired, and the auditor cannot be part of the audit team.
Explanation: According to CPA Canada independence standards, a direct or material indirect financial interest in an audit client by a close relative (such as a sibling) generally impairs the auditor's independence. This auditor cannot be part of the audit team.
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Question explanations
- What is the minimum visibility required for a commercial VFR flight in Class D airspace at or below 3,000 feet
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- Scenario 1: A commercial pilot conducting an IFR flight in Canadian airspace must hold which of the following
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