Which of the Following Would Not Be Considered an Indirect

question 64

Multiple Choice

Which of the following would not be considered an indirect financial interest for a given CPA?

• A) The CPA owns stock in a mutual fund, which owns stock in the client.
• B) The CPA owns stock in a bank that provides the line of credit to the client company.
• C) The CPA's nondependent close relative has a financial interest in the client company.
• D) The CPA's dependent child owns an immaterial amount of stock in the client
• Company.
• E) The CPA received cash advances totaling eight thousand dollars from a bank that is a client.

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Definitions:

Null Hypothesis

A statement used in hypothesis testing that posits there is no statistical significance in a set of given observations, aiming to be either rejected or not rejected.

Alpha

In hypothesis testing, the alpha value denotes the threshold of significance, where typical levels are 0.05 (5%) or 0.01 (1%), used to determine if the null hypothesis can be rejected.

Statistical Probability

The likelihood of an event occurring based on a mathematical model, often expressed as a number between 0 and 1.