A Professional Accounting Firm Has Several Audit and Tax Clients;

question 13

Multiple Choice

A professional accounting firm has several audit and tax clients; however, a single client represents 40% of the firm's revenue. This situation could result in which of the following threats to professional independence?

• A) self-review
• B) intimidation
• C) advocacy
• D) familiarity
• E) self-interest

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Definitions:

Psychosexual Development

According to Freud, a series of stages that children pass through in which pleasure, or gratification, focuses on a particular biological function and body part.

Cognitive Development

The growth and change in intellectual capabilities that influence a person’s behavior and learning processes.

Jean Piaget

A Swiss psychologist renowned for his pioneering work on the cognitive development of children, proposing a series of developmental stages.

Fixation

In psychology, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development in which conflicts were unresolved.