Section 288-5-002 - Independence002.01 Independence A licensee who is performing an engagement in which the licensee will issue a report on financial statements of any client (other than a compilation report in which a lack of independence is disclosed) must be independent with respect to the client in fact and appearance. Independence will be considered to be impaired, if, for example:
002.01A During the period of his professional engagement, or at the time of expressing his opinion, the licensee, his firm, or any member thereof 002.01A1 had or was committed to acquire any direct or material indirect financial interest in the enterprise;002.01A2 was a trustee of any trust or the personal representative of any estate that had or was committed to acquire any direct or material indirect financial interest in the enterprise;002.01A3 had any joint closely held business investment with the enterprise or any officer, director or principal stockholder thereof which was material in relation to the net worth of the licensee or the enterprise;002.01A4 had any loan to or from the enterprise or any officer, director or principal stockholder thereof, other than the following kinds of loans from a financial institution when made under normal lending procedures, terms and requirements: (1) loans obtained by the licensee or his firm which are not material in relation to the net worth of such borrower; (3) other secured loans, except those loans secured solely by the guarantee of the licensee or his firm.002.01B Either during the period covered by the financial statements, the period of the professional engagement, or at the time of expressing an opinion, the licensee 002.01B1 was connected with the enterprise as a promoter, underwriter, voting trustee, a director or officer or in any capacity equivalent to that of a member of management or of an employee; or002.01B2 was the trustee for any pension or profit-sharing trust of the enterprise.288 Neb. Admin. Code, ch. 5, § 002