Which of the Following Is Allowable for a CPA

question 53

Multiple Choice

Which of the following is allowable for a CPA?

• A)A used car loan from a banking client where the client has a lien on the car.
• B)An uncollateralized signature loan from a client.
• C)Owning more than five percent of the outstanding shares of client stock in a retirement account.
• D)The audit engagement partner (or partner equivalent)serves on the client's audit committee.

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Definitions:

Extreme Drinking

Consuming alcohol in quantities far beyond what is considered moderate or safe, leading to potential health risks and social consequences.

Full-time

Describes employment where the individual works the number of hours defined as full by their employer, typically around 40 hours per week.

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other negative outcomes.

Addiction

A psychological and physical inability to stop consuming a chemical, drug, activity, or substance, even though it is causing psychological and physical harm.