Interpretations to the Rules of Conduct Permit a CPA Firm

question 47

Multiple Choice

Interpretations to the Rules of Conduct permit a CPA firm to do both bookkeeping and auditing for the same private company client if three criteria are met. Which of the following is not one of those criteria?

• A) The client must accept full responsibility for the financial statements.
• B) The client is required to file an annual report, including audited financial statements, with the Securities and Exchange Commission.
• C) The CPA must not assume the role of employee or of manager.
• D) The CPA must follow applicable auditing standards.

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Definitions:

Workable Goal

A realistic and achievable objective, often set in therapeutic, personal, or professional contexts to ensure progress and success.

Past-Exception Question

A question used in therapy to help clients identify times in the past when their problem did not occur, emphasizing their ability to overcome difficulties.

Miracle Question

A solution-focused technique that asks clients to envision how their life would change if a miracle solved their biggest problem overnight.

Double-Sided Reflection

In motivational interviewing, a technique that acknowledges what a client has said but also introduces an alternative perspective to consider.