In Deciding Whether a Conflict of Interest Exists,the Relevant Standard

question 10

Multiple Choice

In deciding whether a conflict of interest exists,the relevant standard to be applied is whether:

• A) The CPA subjectively believes that a conflict of interest exists
• B) A reasonable observer, with reasonable knowledge of the relevant circumstances, would conclude that a conflict of interest exists
• C) In an accountant-client conflict of interest situation, at least one of the clients believes, reasonably or unreasonably, that a conflict of interest exists
• D) In a dual-client conflict of interest situation, both of the clients themselves believe, reasonably or unreasonably, that a conflict of interest exists

---

Definitions:

Situations

Contexts or scenarios in which events occur, often influencing the behavior and decisions of those involved.

Personal Power

The influence or authority a person holds, derived from their skills, qualities, or relationships, rather than their formal position.

Personal Gain

The benefit or advantage that an individual receives or aims to receive from an action or decision.

Motivation

The internal drive or external incentives that prompt individuals to act in a certain way or pursue specific goals.