Indirect financial interest definition
/What is an Indirect Financial Interest?
An indirect financial interest is a financial interest that is beneficially owned through an investment vehicle or other intermediary when the beneficiary does not control the intermediary and does not have the authority to supervise or participate in the investment decisions of the intermediary.
The concept is of considerable importance for an auditor, when deciding whether he or she is properly independent from an attest client. Depending on the situation, the existence of an indirect financial interest could compromise an auditor’s independence.