Financial interest

A financial interest is an ownership stake in an equity security or debt security issued by an entity, including the rights and obligations to acquire such an interest. An auditor is deeply interested in the types and amounts of financial interests he or she holds in an attest client, since these investments can impact the auditor’s level of independence in relation to the client. Impaired independence can result in the auditor having to terminate an attestation engagement.

Related Courses

Auditor Independence