A Direct Financial Interest Violates Independence in Which of the Following

question 84

Multiple Choice

A direct financial interest violates independence in which of the following circumstances?

• A) when close relatives such as nondependent children, brothers, and sisters have a significant financial interest in the client
• B) when close relatives such as nondependent children, brothers, and sisters have any financial interest in the client
• C) when the CPA owns shares in a mutual fund that has an ownership interest in the client
• D) when close relatives such as a brother, sister, or in-laws are employed by the client in their engineering department

---

Definitions:

Cournot

A model of duopoly in which two firms assume the output of the other, deciding their own production levels to maximize profit.

Sequential Game

A type of game theory model where players make decisions one after another, with each player's decision possibly affecting future decisions by themselves or others.

Simultaneous-Move Scenario

A situation in game theory where all players make their decisions or choose their strategies at the same time without knowledge of the others' choices.

Sequentially Played Game

A game in which players make decisions or moves one after another, in a specific sequence.