Which of the Following Statements Is True When the CPA

question 56

Multiple Choice

Which of the following statements is true when the CPA has been engaged to perform an audit of financial statements?

• A) The CPA firm is engaged and paid by the client; therefore, the firm has primary responsibility to be an advocate for the client.
• B) The CPA firm is engaged and paid by the client, but the primary beneficiaries of the audit are those who rely on the financial statements.
• C) Should a situation arise where there is no convincing authoritative standard available, and there is a choice of actions which could impact a client's financial statements, the CPA is free to endorse the choice which is in the investors' interests.
• D) The CPA firm has primary responsibility to the FASB.

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Definitions:

Marketing Communications

The process of using various communication channels and tools in combination to deliver a clear, consistent, and compelling message about an organization and its products.

Loyalty Programs

Marketing strategies designed to encourage customers to continue to shop at or use the services of businesses associated with each program.

Federal Agencies

Government bodies established by the legislation to perform specific functions or duties at the national level.

FCC

The Federal Communications Commission, a United States government agency that regulates interstate and international communications by radio, television, wire, satellite, and cable.