Please watch the FULL video (3 sections) titled “the Importance of Being
Independent” which focuses on the public interest, professional skepticism,
financial statements users, and independence in fact and appearance.
“Section 1 – Independence 101” (approx. 12 minutes)
“Section II – The Public Accounting Profession” (approx. 5 minutes)
“Section III – Independence at Work” (approx. 10 minutes)
The videos can be found at https://giesbusiness.illinois.edu/responsibility/student- materials After watching the video, please respond to the following questions.
1) Your uncle is employed as the controller of Company J, an audit client of
your firm. You are asked to serve on the Company J audit team. You are
pretty sure that the independence rules do not prohibit you from serving on
the audit team because technically your uncle is not a “close relative.”
You have a close relationship with your uncle and see him on a regular
basis. Should you disclose this relationship to your firm? Why?
2) What do other professions, such as law or medicine, have in common with the
accounting profession?
3) All professionals in public accounting firms, whether they provide audit,
tax, or consulting services, should comply with the accounting firm’s
independence policies and applicable independence rules. Why do you think
this is?
4) Do you consider any of the “five areas of independence,” described in the
Video, a greater threat to independence than any of the other areas? Why?
Formatting: As indicated in the syllabus, your response should not exceed 2 single spaced
pages.
