If a Member Owns Several Shares of Stock of a Company

question 35

True/False

If a member owns several shares of stock of a company during the first few months of the fiscal year under audit and then sells the shares before accepting the engagement,the firm does not violate the independence rules of the AICPA.

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Definitions:

Pyrimidine

A heterocyclic aromatic organic compound, similar to benzene and pyridine, containing nitrogen atoms at positions 1 and 3 in the ring.

Benzofuran

An organic compound that consists of a fused benzene and furan ring, often serving as a core structure in various pharmaceuticals and organic materials.

Indole

An aromatic heterocyclic organic compound with a bicyclic structure, consisting of a benzene ring fused to pyrrole.

Aromatic

Refers to organic compounds that contain one or more planar rings of atoms with delocalized pi electrons, exhibiting special stability.