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‘ A minor child holding shares in a client company.’
This will pose a threat to the independence?
Was the question is telling that his/her child is obtainning the shares in the client company?Was the question is telling that his/her child is obtainning the shares in the client company? I don’t understand your question – sorry
That is my question!!
Because the text book do not state whether it is his/her child is obtainning the shares in the client company.
So if there are such question is coming out, can we assume that the child is obtained the shares in the client company?
Hi – I’m sorry, but MY problem is understanding what it is exactly that you are asking! A threat to independence exists when an auditor’s minor child holds shares in a client company because the minor is under the apparent (!) control of the parent. When the child reaches the age of 18 ( in the UK ) they are no longer considered to be under parental control. Many would argue that parental control is lost substantially earlier, but age 18 is the official figure!
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