Jun 2015 Q4(c) Interest in Shares

An audit partner in the firm holds a direct financial interest in an audit client. The following is taken from ACCA's Rulebook (which you can download from https://www.accaglobal.com/us/en/member/standards/rules-and-standards/rulebook.html) "290.108 If other partners in the office in which the engagement partner practises in connection with the audit engagement, or their immediate family members, hold a direct financial interest or a material indirect financial interest in that audit client, the self-interest threat created would be so significant that no safeguards could reduce the threat to an acceptable level. Therefore, neither such partners nor their immediate family members shall hold any such financial interests in such an audit client." Remember what independence means - independence of mind and independence in appearance.