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Before Accepting a New Client, Most CPA Firms Investigate the Company

question 29

True/False

Before accepting a new client, most CPA firms investigate the company to determine its acceptability. However, AICPA confidentiality requirements prohibit CPA firms from contacting certain parties-namely the company's attorneys and bankers-during this investigation.


Definitions:

Conjugation

A form of genetic exchange between bacteria where genetic material is transferred from one bacterium to another through direct contact.

Circular Chromosome

A type of chromosome common in bacteria and archaea, characterized by a circular DNA molecule that lacks a telomere and where replication occurs in a bidirectional manner.

Ribosomes

Small cellular structures that are the sites of protein synthesis in living cells.

Cell Wall

Cellular structure that surrounds a plant, protistan, fungal, or bacterial cell and maintains the cell’s shape and rigidity; composed of polysaccharides.

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