Which of the Following Is Least Likely to Impair a CPA

question 41

Multiple Choice

Which of the following is least likely to impair a CPA firm's independence with respect to an audit client in the Oklahoma City office of a national CPA firm?

• A) A partner in the Oklahoma City office owns an immaterial amount of stock in the client.
• B) A partner in the Jersey City office owns 25% of the client's stock.
• C) A partner in the Oklahoma City office, who does not work on the audit engagement, previously served as controller for the audit client.
• D) A partner in the Chicago office previously served as vice president of finance for the audit client.

---

Definitions:

Disclosure

Disclosure involves the act of making information or data known or public, especially information that was previously unknown or kept confidential.

Uniform Securities Act

A model law designed to guide states in regulating the sale of securities to protect investors from fraud.

Register by Coordination

A process for securities registration where state and federal requirements are coordinated to streamline the process for issuers.

1933 Act Registration Statement

A document filed with the SEC that includes all material information about a company offering securities to the public.