| Title: |
Independence Framework |
| Prerequisite: |
None |
| Advance Preparation: |
None |
| Knowledge Level: |
Update |
| Subject Matter Area: |
Auditing |
| Date of Publication: |
October 2008 |
| Copyright © |
2008 by Bisk Education, Inc. All rights reserved. |
| Recommended CPE Credits: |
1 QAS/Registry (based on 50-minute hour) |
| Expiration Date: |
One year from date of receipt to complete program and submit quizzer to obtain credit |
| Passing Grade for Quizzer: |
70 percent or higher |
One of the most difficult areas for practitioners to comply with is the section of the Code of Professional Conduct related to independence. Generally, independence is defined in two ways—independence in mind and independence in appearance. In recent years the AICPA has issued an independence conceptual framework to help professionals comply with the requirements when faced with a situation in practice. This program reviews the AICPA independence framework and the threats and some safeguards that are available. It also considers the differences between the AICPA independence requirements and those of the SEC and the GAO.
Note: Reporting of CPE credit to a CPA's state board is the responsibility of the CPA. Subscribers to CPE Network Accounting & Auditing Report may not receive duplicate credit for this material, which previously aired in the September and October 2008 editions of this program.
Use of Materials
Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the CDs and reading the text, s/he may wish to review her/his notes and any sections of the text or DVD that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.
Online
The user should follow the procedures discussed above. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. When the user has finished reading the text, s/he may wish to review her/his notes and any sections that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.
This program is divided into four (4) chapters.
Chapter 1 contains a discussion with Jennifer F. Louis regarding the AICPA independence framework and the threats and some safeguards that are available.
Chapter 2 contains a discussion with Jennifer F. Louis regarding the differences between the AICPA independence requirements and those of the SEC and the GAO.
Chapter 3 contains supplemental materials, regarding the differences between independence rules from the primary standard setters.
Chapter 4 contains review problems that help illustrate the topic.
Jennifer F. Louis, CPA, is President of Training Services at Emergent Solutions Group, LLC. She has more than 14 years of experience in designing and instructing high-quality training programs. Most recently, Ms. Louis was executive vice president and director of training services at AuditWatch Inc., a premier training and consulting firm serving the auditing profession.