An Accountant Is Most Likely to Be Held to a Fiduciary

question 21

Multiple Choice

An accountant is most likely to be held to a fiduciary standard when:

• A) The accountant is involved in preparing corporate filings for submission to the SEC
• B) A client is in an especially vulnerable financial position
• C) A contingent fee arrangement exists between an accountant and a client
• D) Accountant-client conflicts of interest do not exist or are fully disclosed

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Definitions:

Hand Gestures

Physical movements of the hands used to convey messages or meanings without the use of spoken words, varying significantly across cultures.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a desire to do a task well.

Perception Process

The cognitive process that enables us to interpret and understand our surroundings through the data acquired by our sensory organs.

Pollyanna Principle

The tendency for people to remember pleasant items more accurately than unpleasant ones, influencing a generally optimistic worldview.