What defines an immediate family member according to the AICPA?

The definition of an immediate family member according to the AICPA is specifically focused on those individuals who have a significant familial relationship with the member of the organization. This includes a spouse and dependents—typically children or others whom the member financially supports or provides care for.

This definition is crucial in the context of auditing and maintaining ethical standards, as the relationships defined as immediate family can create potential conflicts of interest that auditors must navigate carefully. Understanding who constitutes immediate family helps auditors in assessing independence and objectivity in their work.

While other relatives such as aunts, uncles, and even those who live in the same household might have some relevance in social or familial contexts, they do not meet the criteria set by the AICPA for immediate family members. The focus is on those relationships that are most likely to have a direct influence on the member's professional responsibilities and ethical considerations. Hence, recognizing only the spouse and dependents as immediate family aligns with the AICPA's requirements for maintaining integrity and transparency in the auditing profession.