Which of the Following Is NOT an Example of a Conflict

question 66

Multiple Choice

Which of the following is NOT an example of a conflict situation for CPAs in business that may lead to subordination of judgment?

• A) Making or permitting or directing another party to make, materially false and misleading entries in an entity's financial statements or records
• B) Failing to correct the entity's financial statements or records that are materially false and misleading when the CPA has the authority to record the entries
• C) Signing, or permitting or directing another to sign, a document containing materially false and misleading information.
• D) Preparing the financial statements and auditing the same work

---

Definitions:

Frotteuristic Disorder

Disorder characterized by obtainment of sexual gratification by rubbing one’s genitals against or fondling the body parts of a nonconsenting person.

Sexual Sadism

A condition where individuals derive pleasure from inflicting pain or humiliation on others.

Sexual Masochism

A condition where sexual excitement and satisfaction depend on enduring pain, humiliation, or being bound.

Consenting Adults

Refers to individuals who are of legal age and have the capacity to make decisions about participating in activities, particularly sexual or other significant undertakings, with mutual agreement and understanding.