Which One of the Following Is an Example of a Conflict

question 42

Multiple Choice

Which one of the following is an example of a conflict of interest for a CPA?

• A)Performing tax services and a compilation engagement for a client.
• B)Serving as legal counsel and an auditor for a client.
• C)Providing an audit on internal financial controls and financial statements for a client.
• D)Serving as a chief financial officer as an employee and as a member of the board of directors.

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Definitions:

Preferred Stock

Preferred stock is a class of stock that typically provides a fixed dividend and has precedence over common stock in the distribution of assets in the event of a company's liquidation.

Common Stock

Common Stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a share of the company's profits through dividends.

Stock Options

Financial instruments granting the holder the right to buy or sell stock at a specified price before a certain date.