APES 110 Code of Professional Conduct Considers a Material Direct

question 82

Multiple Choice

APES 110 Code of Professional Conduct considers a material direct financial interest in an audit client to be:

• A) the auditor having a loan from an audit client who is a financial institution.
• B) charging a fee contingent upon an outcome.
• C) accepting commissions from an audit client.
• D) providing taxation services to a client.

---

Definitions:

Capital Funds

Capital funds are financial resources that a company or organization uses for long-term investment, expansion, and operational purposes.

Opportunity Costs

The cost of an alternative that must be forgone to pursue a certain action. Put differently, the benefits you could have received by taking an alternative action.

WACC

Weighted Average Cost of Capital, the average rate of return a company is expected to pay to all its security holders, including equity and debt.

Calculate

The act of determining a value or amount by mathematical means, often to analyze financial or statistical data.