Oehlers, CPA, Is a Staff Auditor Participating in the Engagement

question 100

Multiple Choice

Oehlers, CPA, is a staff auditor participating in the engagement of Capital Trust, Inc. Which of the following circumstances impairs Oehlers' independence?

• A) Oehlers' sister is an internal auditor employed by Capital Trust.
• B) Oehlers' friend, an employee of another local accounting firm, prepares the tax return of Capital Trust's CEO.
• C) Oehlers' and Capital Trust's 401K plans own stock with the same corporation.
• D) During the period of professional engagement, Capital Trust and Oehlers discussed business over lunch at a first-class restaurant.

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Definitions:

Presenting Concern

The initial issue or problem that leads a client to seek counseling or therapy services.

Psychosocial Developmental Stages

Erik Erikson's theory that individuals pass through eight stages from infancy to adulthood, each characterized by a specific psychological crisis.

Core Dynamic Patterns

Fundamental behavioral, emotional, or thought patterns that significantly shape an individual's personality or actions.

Private Logic

An individual's unique set of beliefs, attitudes, and assumptions about the self, others, and the world, guiding behavior and perceptions.