A CPA Audits Waltonvillemart,Inc

question 17

Multiple Choice

A CPA audits Waltonvillemart,Inc.This CPA also serves as the trustee of a trust for the CEO of Waltonvillemart,Inc.The sole asset of this trust is a $1 million life insurance policy that is payable upon the CEO's death to his seven grandchildren.In equal amounts.This CPA:

• A) Is not independent to continue to audit Waltonvillemart, Inc. because of the material amounts involved
• B) Is not independent to continue to audit Waltonvillemart, Inc. because of the appearance, if not actuality, of a dual-client conflict of interest
• C) Definitely is independent to continue to audit Waltonvillemart, Inc. because there are no material threats to independence
• D) Is independent to continue to audit Waltonvillemart, Inc., as long as the company and the CEO both waive their right to object to this trustee service

---

Definitions:

Fodor

Refers to Jerry A. Fodor, an American cognitive scientist and philosopher known for his work on the modularity of mind.

Modular

Pertaining to the concept that cognitive processes are divided into separate, specialized units or modules, each responsible for different types of processing.

Domain-specific

Pertains to knowledge or skills that are relevant to a particular area of activity or field of study.

Wernicke's Aphasia

A condition resulting from damage to the Wernicke's area of the brain, characterized by difficulty in understanding language and producing meaningful sentences.