The Materiality of a Conflict of Interest Should Be Evaluated

question 32

Multiple Choice

The materiality of a conflict of interest should be evaluated from the perspective of:

• A) Whether a reasonable client would consider the conflict to be material
• B) Whether a client, acting unreasonably or reasonably, would consider the conflict to be material
• C) Whether an objective observer who is reasonably informed about the surrounding facts would conclude that a conflict of interest is material
• D) Whether the CPA subjectively, from his or her own vantage point, has concerns about two or more material interests clashing

---

Definitions:

Cold Demeanor

A behavior characterized by emotional detachment, aloofness, or a lack of warmth in interactions with others.

Single-blind Experiment

A type of experiment where the participants do not know which group (control or experimental) they belong to, but the researchers do.

Experimental Group

A group in a scientific study that is exposed to the variable being tested, in contrast to the control group.

Control Group

In an experiment, the group that is not exposed to the treatment, serving as a comparison point for assessing the effect of that treatment.