Which of the Following Acts by a CPA Would Most

question 60

Multiple Choice

Which of the following acts by a CPA would most likely be considered a violation of the AICPA Code of Professional Conduct?

• A)Assisting a client in preparing a financial forecast.
• B)Forming a professional corporation to practice as a CPA.
• C)Accepting a fee in a tax matter relating to an administrative proceeding.
• D)A "covered member" owns an immaterial amount of stock in an audit client.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, calculated as total assets minus total liabilities.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce value.

Liabilities

Financial obligations or debts owed by a company to creditors.

Missing Amount

A term referring to unaccounted funds or discrepancies found in financial records during a reconciliation or audit process.