Auditors of Governmental Units Would Not Be Presumed to Be

question 98

Multiple Choice

Auditors of governmental units would not be presumed to be independent if they are

• A)free from sources of personal impairment.
• B)independent under AICPA Code of Professional Conduct rules.
• C)auditing the branch of government to which they are assigned.
• D)elected or appointed and reporting to a legislative body of government.

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Definitions:

Capital Gains

The profit from the sale of an asset such as stocks, bonds, or real estate that exceeds its purchase price.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, indicating the impact of an additional dollar of income on tax liability.

Taxable Income

The amount of income subject to tax, after all deductions and exemptions have been subtracted from total income.

CCA Rate

Stands for Capital Cost Allowance rate, which is the rate at which a business can claim depreciation on capital assets for tax purposes in Canada.