In Which of the Following Circumstances Would a Covered Member

question 22

Multiple Choice

In which of the following circumstances would a covered member be considered independent when performing the audit of the financial statements of a new client for the year ended December 31,20X3?

• A)The covered member resigned on January 17,20X3 from the board of directors of the client,prior to accepting the new audit engagement.
• B)The covered member continues to hold an immaterial indirect financial interest in the client.
• C)The covered member continues to serve as a trustee for the client's pension plan and has the authority to make investment decisions.
• D)The covered member's spouse owns an immaterial amount of shares of common stock in the client.

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Definitions:

Binary Search

An algorithm that seeks a particular value within a sorted list by consistently halving the search space, indicating whether the sought value is to the left or right of the examined midpoint.

Key Comparisons

The process of comparing the keys in data structures or algorithms to sort or search through data.

Binary Search

An efficient algorithm for finding an item from a sorted list of items, by repeatedly dividing in half the portion of the list that could contain the item.

Sorted List

A list that maintains its elements in a sorted order, either ascending or descending, making it efficient for operations like searching.