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:

Monetary Policy

Government or central bank policies aimed at controlling the supply of money and interest rates in an economy.

Fiscal Policy

A government's strategy for managing its budget, especially through taxation and spending decisions, to influence the economy.

Aggregate Demand

The entire market demand for goods and services within an economic environment, determined at an established price level over a fixed duration.

Stock Prices

The market price at which shares of a public company's stock are bought and sold.