Rule 30-1-6.2 - Independence Rule 6.2.1. A CPA or firm of which he is partner, member, or shareholder shall not express an opinion or issue a review report on financial statements of a client unless he is and, if applicable, his firm are independent in fact and appearance with respect to such client. Examples of such impairment of independence include but are not limited to:
(a) During the period of the professional engagement or at the time of expressing an opinion or issuing a review report, he or the CPA firm: (1)had or was committed to acquire any direct or material indirect financial interest in the client; or(2)had any joint closely held business investment with the client or any officer, director, partner, or principal stockholder thereof which was material in relation to the CPA or firm permit holder's net worth;(3)had any loan to or from the client or any officer, director partner, or principal stockholder thereof. This latter proscription does not apply to the following loans from a financial institution when made under normal lending procedures, terms and requirements: a. loans obtained by a CPA or the firm which are not material in relation to the net worth of such borrower;c. other secured loans, except loans guaranteed by a CPA's firm which are otherwise unsecured;(4) was a trustee of any trust or executor or administrator of any estate that had or was committed to acquire any direct or material indirect financial interest in the client;(b) During the period covered by the financial statements, during the period of the professional engagement or at the time of expressing an opinion or issuing a review report, the CPA or the CPA firm: (1)was connected with the client as a promoter, underwriter or voting trustee, a director or officer or in any capacity equivalent to that of a member of management of an employee;(2)was a trustee of any trust or executor or administrator of any estate if such trust or estate had a direct or material indirect financial interest in the client; or was a trustee for any pension or profit-sharing trust of the client;(3)had a commitment from the client for a commission or contingent fee in violation of Rules 6.6. or 6.7. Rule 6.2.2. In any instance in which a CPA's name and/or CPA firm's name is associated with financial statements, if he/it is not independent, such lack of independence shall be disclosed.
Rule 6.2.3. Independence will be presumed to be impaired if the CPA or firm permit holder performs audit services, other than for charitable organizations, for a fee that is less than the direct labor cost reasonably expected at the time the engagement was accepted to be incurred in performing such services. For this purpose direct labor costs means the total compensation of the person or persons expected to perform the service for the time they are expected to serve on the engagement plus all payroll expenses related to such compensation.
Rule 6.2.4. A CPA or firm permit holder's independence may be impaired by a close relative's association with a client. Close relatives are defined as spouses and dependent persons, whether or not related, and defined as dependent and non-dependent children, grandchildren, stepchildren, brothers, sisters, parents, grandparents, parents-in-law, and their respective spouses.
(a) CPA and firm permit holders must consider whether the strength of personal and business relationships between the CPA or firm permit holder and the close relative would lead a reasonable person who is aware of all the facts to conclude that the situation poses an unacceptable threat to the certificate or registration holder's objectivity and appearance of independence. In reaching this conclusion, the CPA or firm permit holder should consider the specific association with the client.(b) A CPA or firm permit holder's independence will be presumed to be impaired with respect to a client if: (1)during the period of the professional engagement or at the time of expressing an opinion, the CPA or firm permit holder participating in the engagement has knowledge of a close relative who has a material financial interest in the client;(2)during the period covered by the financial statements, during the period of the professional engagement, or at the time of expressing an opinion: a. the CPA or firm permit holder participating in the engagement has a close relative who could exercise significant influence over the operative, financial, or accounting policies of the client or is otherwise employed in a position in which the close relative's activities are normally an element of or subject to significant internal accounting controls;b. a proprietor, shareholder, or individual in a managerial position in a CPA or firm permit holder's office has a close relative who could exercise significant influence over the client's operating, financial, or accounting policies, if that proprietor, shareholder or individual participates in a significant portion of the engagement. Rule 6.2.5. The examples of impaired independence described in rules above are not intended to be all-inclusive.
Miss. Code Ann. § 73- 33-5 (f)