In Which of the Following Instances Would the Independence of the CPA

question 37

Multiple Choice

In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm

• A) Which owes the CPA audit fees for more than one year.
• B) In which the CPA has a large active margin account.
• C) In which the CPA's brother is the controller.
• D) Which owes the CPA audit fees for current year services and has just filed a petition for bankruptcy.

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Definitions:

Promotion-To-Sales Ratio

A metric in marketing that compares the cost of marketing and promotion efforts to the resulting sales volume.

Promotional Efforts

Marketing activities aimed at increasing awareness, interest, and sales of a product or service through various strategies and channels.

Objective and Task Budgeting

A method of budget setting where a company first defines its objectives and then estimates the cost of all tasks needed to achieve these objectives.