If a partner works on an audit engagement for a client whose wife is a cashier, does this situation impair independence?

In considering whether the independence of the partner is impaired in this scenario, it's important to understand the relevant ethical guidelines governing the conduct of CPAs. Independence is a fundamental principle that is crucial for maintaining public trust in the profession. A partner's independence could be compromised if family relationships create a financial interest or a situation where the partner cannot remain unbiased.

In this case, the partner's spouse works as a cashier for the client. The position of a cashier, while it is an employee role, typically does not carry with it significant decision-making authority over financial reporting or governance matters. Unless the spouse holds a key position that could significantly influence the client's financial statements or create a material financial interest in the firm, it is generally considered that the independence of the partner would not be impaired simply because a family member holds a non-key position at the company.

The conclusion that independence is not impaired assumes that the spouse's role does not provide access to confidential information or create a financial relationship that could affect the partner's objectivity. Therefore, the partner can maintain independence while conducting the audit, adhering to the ethical standards set forth for CPAs.