Independence of a CPA with Respect to a Client Is

question 42

Multiple Choice

Independence of a CPA with respect to a client is not impaired if:

• A)The CPA has a loan to an officer of the client.
• B)The CPA has an immaterial direct interest in the client.
• C)The CPA is trustee for the client's pension plan.
• D)The CPA has an immaterial joint,closely held business investment with the client.

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Definitions:

Function

Represents the intended purpose or role that something is designed or expected to perform.

Supply Chain Risk

The potential loss resulting from variations in supply chain processes, which includes procurement, manufacturing, distribution, and logistics risks.

Reputational

Pertains to the perception or estimation in which an individual or entity is held by the public or a specific group, impacting its standing and potential success.

Acquisition of Services

The process by which organizations contract for the procurement of non-tangible resources or services.