Which of the Following Family Relationships Is Most Likely to Impair

question 61

Multiple Choice

Which of the following family relationships is most likely to impair a CPA's independence with respect to a particular audit client on which the CPA works as a "covered member"?

• A) A close relative has a material investment in that client of which the CPA is not aware.
• B) A cousin has an immaterial investment in the client of which the CPA is aware.
• C) The CPA's father is president of the audit client.
• D) The CPA's spouse participates in a savings plan sponsored by the client.

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Definitions:

Probabilities

A calculation that determines the chances of an event occurring, with values between 0 and 1 to signify probability.

t-Table

A table used in statistics that shows the critical values of the t-distribution, used in hypothesis testing and constructing confidence intervals.

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints.

Mean

The arithmetic average of a set of values, calculated by summing up all the values and then dividing by the number of values.