In Which of the Following Instances Would the Independence of the CPA

question 43

Multiple Choice

In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a:

• A)charitable organization in which an employee of the CPA serves as treasurer.
• B)municipality in which the CPA owns $25,000 of the $2,500,000 indebtedness of the municipality.
• C)restaurant where the CPA dines frequently.
• D)company in which the CPA's private investment club owns a one-tenth interest.

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Definitions:

Group Development

The stages through which a group passes, typically involving forming, storming, norming, performing, and adjourning, as it matures and becomes more effective.

Typical Stages

Common phases or levels that are encountered during the progression of a process, development, or lifecycle.

Group Development

The stages and processes through which a group goes as it matures, including forming, storming, norming, performing, and adjourning.

Sequence

A specific order or arrangement in which things follow each other.