Which of the Following Statements Is True? the CPA Firm

question 30

Multiple Choice

Which of the following statements is true? The CPA firm will lose its independence if:

• A)a staff auditor providing audit services to the client acquires stock in that client.
• B)a staff tax preparer who provides 15 hours of non-audit services to the client acquires stock in that client.
• C)an audit manager in an office different than the office providing audit services has a direct, immaterial financial interest in the audit client.
• D)a covered member has an indirect, immaterial financial interest in an audit client.

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Definitions:

Proposed Change

Refers to a suggestion or plan put forward to alter a current process, system, product, or policy.

Supervisor

A person who manages or directs the work of others, typically in a professional setting.

Central Selling Points

Key attributes or benefits of a product or service that are emphasized in marketing or sales efforts to persuade potential customers.

Prewriting Analysis

The initial stage of the writing process where planning, research, and outlining occur to lay the groundwork for the main writing task.