Impaired Independence

1. CPA has direct financial interest regardless of immateriality OR material indirect interest
2. Audit fees remain unpaid for 1 year+ prior to the issuance of the current audit report**
3. CPA has a management position with a client
4. CPA makes hiring decisions for a client
5. Litigation (exception: immaterial amounts unrelated to audit)
6. Contingent fees

**Notice also the period to look at is one year from the issuance date of the current year report. The CPA can perform the work without the prior year fee being paid, but he cannot issue the report without the prior year fee being paid. (Source Example)