In Some Situations, the Interpretations of the Rules of Conduct

question 104

Multiple Choice

In some situations, the interpretations of the Rules of Conduct permit former partners to have relationships with a client of the firm without affecting the firm's independence.Which of the following situations would cause a loss of independence?

• A)The former partner works in the maintenance department of an audit client of his former firm.
• B)The former partner's grandson works in the warehouse of an audit client of his former firm.
• C)The former partner was held out as an associate of the firm.
• D)The former partner purchased 5% of the stock of an audit client of his former firm.

---

Definitions:

Absolute Cell Reference

In spreadsheet applications, a cell reference that remains constant even if the formula containing it is copied to another cell.

Relative Cell Reference

In spreadsheet applications, a cell reference that changes when it is copied or moved to another cell, adjusting its position relative to the new location.

Normal View

The default editing view in many software applications, including Microsoft Word, that shows a document as it would appear on a printed page.

Square Brackets

Punctuation marks used to enclose textual material or denote ordered lists or modifications within quotations; not to be confused with parentheses.