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:

Leaky Bucket

A concept often used in telecommunications and computing to describe a method of controlling data flow or managing available bandwidth.

Short-Term Memory

The capacity for holding, but not manipulating, a small amount of information in mind in an active, readily available state for a short period of time.

Procedural Memories

Memories for the performance of actions or skills (“knowing how”).

Short-Term Memory

A type of memory that holds a small amount of information for a brief period, typically seconds to minutes.