An Example of an "Indirect Financial Interest in a Client

question 81

Multiple Choice

An example of an "indirect financial interest in a client" would be

• A) ownership of less than 10% of the client's stock by the covered members spouse.
• B) an ownership of less than 10% of the client's stock by a staff member who is not involved in the audit.
• C) the covered member's ownership of a mutual fund that has an investment in the client.
• D) All of the above are examples of an indirect financial interest in a client.

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Definitions:

Certifies

Indicates the act of confirming or acknowledging something officially.

Valid Signature

a signature that meets legal requirements, signifying agreement, consent, or authenticity of a document.

UCC Section 3-401

A provision within the Uniform Commercial Code that pertains to the authorization and validity of signatures on negotiable instruments, contributing to their enforceability.

Negotiable Instrument

A signed document promising payment to a specified person or the bearer under certain conditions, like checks, drafts, and promissory notes.