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:

Probability Model

A mathematical framework that quantifies the likelihood of various outcomes in an experiment or event.

Random Variable X

A variable whose values depend on outcomes of a probabilistic phenomenon, with each of its outcomes assigned a numerical value.

Good Batteries

Batteries that pass quality tests and are deemed reliable for use in various devices.

Probability Model

A probability model is a mathematical representation of a random phenomenon, consisting of a sample space, events within the sample space, and probabilities associated with each event.