A member records journal entries while performing monthly bookkeeping services without obtaining client approval. Would independence be impaired?
Yes. In order for the member to maintain his or her independence, the client must review and approve the journal entries, and the member should be satisfied that management understands the nature of the proposed entries and the impact the entries have on the financial statements. 2. During the course of providing monthly bookkeeping services, the member receives invoices from the client indicating approval for payment and identifying the appropriate general ledger accounts to record the transaction. The member prepares the client’s checks for payment of those invoices, records the transactions in the client’s general ledger system, and returns the checks to the client for approval and signature. The member does not have signature authority over the client’s checking account. Would independence be impaired? No. Management determined and approved the appropriate account classifications, approved the invoices for payment, and reviewed and signed the prepared checks. 3. During the course o
