AICPA Interpretation 101- 3 (Performance of Other Services: cites several “ other services” that do and do not impair audit independence.

Go to the AICPA website and find whether the following items impair independence (Yes) or do not impair independence (No) when performed for audit clients.
a. Post the client- approved entries to a client’s trial balance.
b. Authorize the client’s customer credit applications.
c. Use CPA’s information- processing facilities to prepare the client’s payroll and generate checks for the client treasurer’s signature.
d. Sign the client’s quarterly federal payroll tax return.
e. Advise client management about the application or financial effect of provisions in an employee benefit plan contract.
f. Have emergency signature authority to cosign cash disbursement checks in connection with a client’s hospital benefit plan.
g. As an investment advisory service, provide analyses of a client’s investments in comparison to benchmarks produced by unrelated third parties.
h. Take temporary custody of a client’s investment assets each time a purchase is made as a device to reduce cash float expense.

  • CreatedOctober 27, 2014
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