An Unacceptable Threat to Independence Occurs When a CPA Performs

question 61

Multiple Choice

An unacceptable threat to independence occurs when a CPA performs nonaudit services for an audit client unless the CPA:

• A) Assumes all management responsibilities
• B) Accepts management's responsibility for the services
• C) Evaluates the adequacy of the services
• D) Evaluates the results of the services

---

Definitions:

Computerized System

An electronic system that uses computers and software to manage, control, or perform a task or process.

Manual System

A system where operations, transactions or processes are carried out without the use of automated or electronic systems, typically involving physical documentation and human intervention.

Internal Controls

Processes and procedures implemented by a company to safeguard its assets, ensure financial report accuracy, and promote operational efficiency.

Current Balances

The total amount present in an account at any given time, reflecting all transactions up to that point.