In Which of the Following Is a CPA Independent in Fact

question 17

Multiple Choice

In which of the following is a CPA independent in fact and appearance?

• A) The CPA's brother is the controller of the company being audited.
• B) The CPA serves on the board of a non-profit with the CFO of the company being audited.
• C) The CPA borrowed money for a new car from the CEO of the company being audited.
• D) The CPA owes an office building that he leases to the client.

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Definitions:

British Political Authority

The legal and institutional powers that govern the United Kingdom, encompassing the monarchy, Parliament, and other democratic structures.

American Political Authority

The legitimacy and power held by institutions and officials within the United States to create, enforce, and interpret laws and policies.

Declaration of Independence

The document adopted on July 4, 1776, by the Second Continental Congress, declaring the Thirteen American Colonies independent from British rule.

Second Continental Congress

The convention of delegates from the Thirteen Colonies that started meeting in the spring of 1775, soon after the outbreak of the American Revolutionary War, which eventually declared independence.