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:

Conglomerate Merger

The merger of two organizations competing in different markets.

Different Markets

Refers to various types of markets or platforms where goods, services, or securities are exchanged, including but not limited to geographic, demographic, or product-based distinctions.

Cultural Assimilation

is the process by which individuals or groups from one culture absorb and integrate the cultural attributes of a dominant or surrounding society.

Cultural Integration

The process where individuals from different cultural backgrounds come to live together harmoniously, sharing and adopting values, traditions, and norms.