For each situation, state whether it is a violation of the independence rule. Answer each of the following questions completely in the green area provided. Y means violation of the independent rule; and N means no violation.

1) A partner is a member of a country club that is a potential new audit client of the CPA firm. The partner has financial decision-making powers at the club but would not serve as the primary engagement partner. He, however, is in the same office as the engagement partner of the audit.

2)A CPA firm just retained a new audit client. The new client’s CFO has offered the engagement manager four tickets for personal use to a national, televised, sporting event, along with the use of the client’s corporate jet to travel to the event. The engagement manager did not accept the ticket.

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The detailed answer for the above question is provided below 1 Answer Y violation of independence ru... View the full answer