Question

Ike Nate works as a manager in the San Francisco office of an international public accounting firm. His father has just taken a position as a purchasing agent for one of the public accounting firm’s San Francisco clients. Has Ike’s independence been impaired with respect to this audit client? Has the public accounting firm’s independence been impaired if Ike does not work on the audit?

Answer 1

Ike Nate works as a manager in the San Francisco office of an international Public accounting firm.At the same time his father has just taken a position as a purchasing agent for one of the Public accounting firm's San Francisco clients.

From the above scenerio we can see that, Ike 's independence being impaired with respect to this audit client.

Because, as Ike's father is an agent of so he can pass the information through his son to the other client.

also his son is able to provide the details of financial statements to his father personally,

so, as a manager of the accounting firm it's not a proper way to deal with it's client.

Ike's independence being impaired with respect to this audit client

public accounting firm’s independence been impaired if Ike does not work on the audit

the firm can appoint a different auditor but it's not possible for that accounting firm to do audit for that particular cleint where their manager's father is involved as an agent.

So, the firm's independence is also been impaired due to this condition.