Lesson: Governmental Engagement Ethics Practice Questions

In this lesson, Nick Palazzolo examines various situations and scenarios related to governmental engagement ethics, specifically focusing on auditor independence. Through a series of practice questions, he explains the importance of independence in the context of auditing financial statements for employee benefit plans. The lesson goes in-depth on aspects such as having an investment advisor from the auditor's firm working on the plan, an auditor obtaining a material and indirect financial interest in the employee benefit plan, and the auditor's spouse obtaining an immaterial direct financial interest. By analyzing each scenario, Nick clarifies the rules around independence and professional engagement.