The CPA Firm Will Lose Its Independence If

question 141

Multiple Choice

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:

Dissociative Disorder

A mental health condition characterized by a disconnection between thoughts, identity, consciousness, and memory.

Conscious Awareness

The state of being aware of and able to think about one's own thoughts, feelings, and experiences.

Sense of Identity

Pertains to one's understanding and perception of themselves, including beliefs, characteristics, and values.

Fugue State

A rare psychological state in which a person loses awareness of their identity or other significant autobiographical information and may engage in unexpected travel or wandering.