A CPA Recently Inherited $400,000 of Stock Outstanding in One

question 27

Multiple Choice

A CPA recently inherited $400,000 of stock outstanding in one of her audit clients.In an attempt to maintain her independence,she placed her holdings of this audit client's stock into a trust.The trust is managed by a well-known independent trustee,JP Bankers Trust Services.The CPA's two young children are the sole beneficiaries of this trust.The CPA:

• A) Successfully has maintained her independence because none of the trust's assets directly benefit her
• B) Successfully has maintained her independence because she does not have control of these assets
• C) Has not maintained her independence because of the serious self-review threat presented
• D) Has not maintained her independence because she still is considered to have an interest in her audit client

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Definitions:

Human Race

Refers to the entirety of Homo sapiens as a species, emphasizing the shared characteristics and biological kinship of all human beings.

Geographical Separation

The physical distance between locations, often affecting social, economic, or political relations.

Transnational Communities

Communities whose boundaries extend between countries.

Ethnic Groups

Collectives of people who share a common identity based on cultural characteristics such as language, religion, ancestral heritage, and traditions.