CPA Kara Rambo Is the Auditor of Ajax Corporation

question 68

Multiple Choice

CPA Kara Rambo is the auditor of Ajax Corporation.Her audit independence will not be considered impaired if she

• A) Owns $1,000 worth of Ajax stock.
• B) Has a husband who owns $1,000 worth of Ajax stock.
• C) Has a sister who is the financial vice president of Ajax.
• D) Owns $1,000 worth of the stock of Pericles Corporation, which is controlled by Ajax as a result of Ajax's ownership of 40 percent of Pericles' stock, and Pericles contributes 3 percent of the total assets and income in Ajax's financial statements.

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Definitions:

Grossly Disorganized Behaviour

Extreme difficulty in goal-directed behavior, often manifesting as unpredictable or inappropriate actions or responses.

Dancing

The act of moving rhythmically to music, typically following a set sequence of steps, and often used as a form of expression or social interaction.

Diathesis-Stress Model

A model that recognizes the combination of a diathesis (i.e., vulnerability) and sufficient amounts of life stress that, combined, are likely to produce a disorder.

Vulnerability

The susceptibility to physical or emotional injury or attack; it can also refer to a person's increased risk of developing a disorder or illness.