Under Which of the Following Circumstances Would the Independence of a CPA

question 4

Multiple Choice

Under which of the following circumstances would the independence of a CPA be considered impaired if the CPA,who also is an attorney,serves as auditor and provides legal services to the same client?

• A) When the CPA, as legal agent, consummates a business acquisition for the client.
• B) When the CPA's audit fees and legal fees are not billed separately.
• C) When the CPA uses legal expertise to research a question of income tax law.
• D) When the legal services consist of an analysis of the terms of an existing lease agreement.

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Definitions:

Severe Disorders

Severe Disorders are intense, often debilitating conditions which significantly impact an individual's functioning in daily life; these can be mental, physical, or a combination of both.

Psychotherapy

The treatment of mental disorder or emotional challenges by psychological means rather than medical, often involving talking therapies with a trained professional.

Mild Disorders

Refers to psychological or psychiatric conditions that are present but not severe enough to significantly interfere with an individual’s daily functioning.

Couples Therapy

A form of psychotherapy aimed at resolving relationship issues and improving communication between partners.