Please help...accounting question!

Question

Casey S. Casey has been hired by Samson and Co. to conduct their annual audit for the past five years. The company has always been pleased with the work that Casey has done, and the company has often provided Casey with a Christmas gift and complimentary dinner tickets. In fact, the company treats Casey as "one of their own" when he arrives to do his yearly audit.

Is Casey's relationship with Samson and Co. considered "independent"? That is, is he still qualified to complete the yearly audit?

Answer 1

No, he is not considered as "independent". He has not complied with IFAC's Code of Ethics for Professional Accountants. There is an obvious familiarity threat if he is treated as "one of their own".

A professional accountant in public practice may be offered gifts and hospitality from a client. Such an offer ordinarily gives rise to threats to compliance with the fundamental principles. For example, self-interest threats to objectivity may be created if a gift from a client is accepted; intimidation threats to objectivity may result from the possibility of such offers being made public.