American Institute of Certified Public Accountants (AICPA) Practice Exam

Ensuring proper execution of transactions does not inherently impair a CPA's independence. Independence, in the context of auditing and accounting, relates to the ability of the CPA to maintain an objective and unbiased mindset while performing their duties. If a CPA is only performing tasks that involve ensuring the accuracy and proper execution of transactions but is not involved in decision-making or management functions, their independence remains intact.

The idea is that involvement in execution refers to making choices or influencing how transactions occur, which could create a conflict of interest. However, merely ensuring that transactions are executed correctly—such as verifying that processes are followed and that proper documentation is in place—does not compromise independence, as long as the CPA remains outside of the decision-making process and does not assume managerial roles.

Understanding this distinction helps clarify why merely ensuring proper execution is not a violation of independence principles.