A CPA's Financial Interests in Nonclients May Have an Effect

question 129

Multiple Choice

A CPA's financial interests in nonclients may have an effect on independence if the nonclients are investors in or investees of the client. Which situation would not impair a CPA's independence?

• A) The client has an immaterial investment in a nonclient investee in which the CPA has an immaterial investment.
• B) The CPA has a material indirect financial interest in a nonclient in which the client has a material investment.
• C) The client investor has a nonmaterial investment in the nonclient investee in which the CPA has a material investment.
• D) The CPA has a joint closely held investment with the client in a nonclient that is material to the client as well as the CPA.

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Definitions:

Surrogate Mothers

Women who carry and deliver a baby on behalf of another person or couple, often involving a legal or informal agreement.

Bodily Contact

Physical touch or connection between individuals, important for emotional bonding and development in humans.

Visual Stimulation

Exposure to sights or images that can affect cognitive and emotional states, fostering attention and perception.

Surrogate Mothers

Women who agree to carry and give birth to a child for another person or couple, transferring the legal and parental rights after birth.