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.

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Definitions:

Hydrolysis

Water-requiring chemical reaction that breaks a molecule into smaller subunits.

Carbohydrate

Carbohydrates are a group of organic compounds including sugars, starch, and cellulose that serve as a major energy source in the diet of animals.

Energy Store

The capacity of a system to contain energy for later use, often in the form of chemical bonds, mechanical position, or heat.

Animals

Multicellular, eukaryotic organisms of the kingdom Animalia that consume organic material, breathe oxygen, can move, reproduce sexually, and grow from a hollow sphere of cells, the blastula, during early embryonic development.