When the Public Accounting Firm Audits FUND-A in a Mutual

question 84

Multiple Choice

When the public accounting firm audits FUND-A in a mutual fund complex that has sister funds FUND-B and FUND-C,independence for the audit of FUND-A is not impaired when

• A) Managerial-level professionals located in the office where the engagement audit partner is located but who are not on the engagement team own shares in FUND-B, which is not an audit client.
• B) The wife of the FUND-A audit engagement partner owns shares in FUND-C (an audit client of another of the firm's offices) and these shares are held through the wife's employee benefit plan funded by her employer, the AllSteelFence Company.
• C) Both (a) and (b).
• D) Neither (a) nor (b).

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Definitions:

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