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:

Recording Process

The systematic method of capturing all financial transactions of a company to ensure accurate financial reporting and analysis.

Chronological Record

Documentation or recording of events in the order of their occurrence over time.

Transaction

A financial event that changes the value or composition of a company's assets, liabilities, or equity.

Journal

A chronological record of all financial transactions, used to transfer information to a company's general ledger.