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:

Masculinity-Femininity

Refers to a set of attributes, behaviors, and roles associated with boys and men (masculinity) and girls and women (femininity) within a particular culture.

Uncertainty Avoidance

A cultural dimension that describes the extent to which societies tolerate ambiguity and uncertainty, impacting their norms, values, and behaviors in efforts to minimize or avoid these states.

Individualism-Collectivism

A cultural dimension that contrasts societies that prioritize individual goals, autonomy, and rights with those that emphasize group goals, cohesion, and the common good.

Relational Theory

An analysis based on structures of meaningful social relationships that recur across cultures.