If requested to perform a review engagement for a non issuer in which an accountant has an immaterial direct
financial interest, the accountant is:
a. Not independent and, therefore, may not be associated with the financial statements.
b. Not independent and, therefore, may not issue a review report.
c. Not independent and, therefore, may issue a review report, but may not issue an auditor's opinion.
d. Independent because the financial interest is immaterial and, therefore, may issue a review report.
Choice "b" is correct. An accountant with an immaterial direct financial interest in a client is no longer
independent with respect to that client. The accountant is precluded from issuing a review report on the
financial statements of an entity with respect to which he is not independent. If the accountant is not
independent, he may issue a compilation report provided he complies with the compilation standards.