Which of the Following Is Allowable for a CPA

question 29

Multiple Choice

Which of the following is allowable for a CPA?

• A) A used car loan from a banking client where the client has a lien on the car.
• B) An uncollateralized signature loan from a client.
• C) Owning more than five percent of the outstanding shares of client stock in a retirement account.
• D) The audit engagement partner serves on the client's audit committee.

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Definitions:

Prison Guard

A security officer who works in a prison and is responsible for the supervision, safety, and security of prisoners.

Parole Officer

A law enforcement agent who supervises offenders who have been released from prison on parole, ensuring they comply with parole conditions.

Wealth

An abundance of valuable material possessions or resources; the total of all assets owned by an individual or organization minus liabilities.

Saving

The act of preserving financial resources for future use, often through mechanisms like bank accounts, investments, or pension plans.