There Are a Number of Things That the CPA,representing the Profession

question 100

Multiple Choice

There are a number of things that the CPA,representing the profession as a whole,can do to reduce the practitioner's exposure to lawsuits.One of them is to

• A)sanction members for improper conduct and performance.
• B)deal only with clients possessing integrity.
• C)hire qualified auditors and train and supervise them.
• D)perform quality audits.

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate governance.

Accounting Implications

The effects or outcomes that accounting practices and principles have on financial statements and business decisions.

Business Combination

A transaction or event in which two or more businesses come together to form one company.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair value of identifiable net assets of a business acquired.