Which of the Following Situations of a CPA's Distant Relatives

question 59

Multiple Choice

Which of the following situations of a CPA's distant relatives does not impair the CPA's independence?

• A)CPA's parent holds a key position with an audit client.
• B)CPA's nephew is starting as a salesperson with an audit client.
• C)CPA's aunt owns a material interest, and sits on the board, of an audit client.
• D)CPA's sister is chief counsel for an audit client.

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Definitions:

Decentralized Organizations

Organizations where the decision-making authority is distributed among various levels rather than being concentrated at a single point.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Spans Of Control

The number of subordinates or units that a manager or leader can directly oversee effectively.

Managers

Individuals responsible for planning, organizing, directing, and controlling resources to achieve specific organizational goals.