Question

CPA Kara Rambo is the auditor of Ajax Corporation. Her audit independence will not be considered impaired if she:

a. Owns stock in Ajax Corporation
b. Serves on Ajax Corporation's board of directors
c. Has a spouse who works as a financial analyst for Ajax Corporation
d. Provides consulting services to Ajax Corporation

Answer 1

CPA Kara Rambo's audit independence will not be considered impaired if she owns an insignificant amount of stock in Ajax Corporation.

Step-by-step explanation:

Auditor independence is a crucial principle in the field of accounting. As a Certified Public Accountant (CPA), Kara Rambo must maintain independence to ensure an unbiased audit of Ajax Corporation. Therefore, options b, c, and d would impair her audit independence.

Option a, owning stock in Ajax Corporation, may also create a conflict of interest. However, if Kara owns an insignificant amount of stock that does not influence her professional judgment, her independence may not be impaired.