At the A&A conference last week a speaker suggested that we use the ‘six degrees’ model for a guide to independence. She suggested at least 3 degrees were required.

I agree. Under current independence guidelines we can audit the company where our brother-in-law is the CEO.  Under the ethics guidance, we cannot audit any company were an immediate family member is a part of management.  Our sister would be immediate family, but our brother-in-law would not.

Now, if our brother-in-law also owned shares and they lived in a community property state, then we would be out…….

I think most of us agree that we should not consider ourselves independent of a company controlled by our in-law. Remember we must be independent in appearance as well as fact.

Sister would be one degree, brother-in-law two….I agree with three idea.