A CPA Who Is Not Independent and Is Associated with Financial

question 48

Multiple Choice

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements.The disclaimer should

• A) Clearly state the specific reasons for lack of independence.
• B) Not mention any reason for the disclaimer other than that the CPA was unable to conduct the examination in accordance with generally accepted auditing standards.
• C) Not describe the reason for lack of independence but should state specifically that the CPA is not independent.
• D) Include a middle paragraph clearly describing the CPA's association with the client and explaining why the CPA was unable to gather sufficient appropriate evidential matter to warrant the expression of an opinion.

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Definitions:

Principle of Individualism

The philosophical stance emphasizing the moral worth and autonomous rights of the individual over collective entities.

Basic Human Rights

Fundamental rights believed to belong to every person, including the right to life, liberty, freedom of thought and expression, and equality before the law.

Profit and Morality

The examination of the ethical considerations involved in pursuing profit, including how businesses balance their desire for financial gain with moral and ethical responsibilities.

Rationalizations

The process of explaining or justifying behavior or an attitude with logical reasons, even if these are not appropriate.