An Accountant and a Prospective Client Are Contemplating Entering into a Professional

question 14

Multiple Choice

An accountant and a prospective client are contemplating entering into a professional relationship in which the accountant will provide monthly bookkeeping services and annual tax return preparation services for this client's hair salon.The accountant's teenage daughter told this prospective client that her father is "an amazing accountant," which facilitated the professional introduction.The accountant's daughter works for this prospective client as a receptionist.In all likelihood,the accountant:

• A) May not provide services to this prospective client
• B) May provide only tax preparation services to this prospective client because a conflict of interest presently exists
• C) May provide only bookkeeping services to this prospective client because a conflict of interest presently exists
• D) May provide all requested services because a conflict of interest does not currently exist and is not reasonably foreseeable

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Definitions:

Technical Expertise

Specialized knowledge or skills in a specific field or area of technology, acquired through education, training, or professional experience.

Line Managers

Supervisors or managers who are directly responsible for overseeing the day-to-day work of other employees.

Planning

The process of making plans for something, including setting goals and determining the steps and resources needed to achieve those goals.

Top Managerial Positions

Refers to the highest-ranking roles within an organization, responsible for strategic decisions and overall direction.