A CPA Provides Services to Two Clients in the Same

question 30

Multiple Choice

A CPA provides services to two clients in the same industry.Both clients have been informed of this fact and have acknowledged their approval in writing.As a result:

• A) The CPA nonetheless is violating professional standards concerning conflicts of interest
• B) The duty of confidentiality has been waived and does not apply to the two accountant-client relationships mentioned
• C) Must be careful to not share specific information learned from one client with the other client
• D) Must be careful to not utilize general industry experience gained from serving one client to benefit the other client

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Definitions:

Uniform Distribution

A probability distribution where all outcomes are equally likely to occur.

Independence Test

A statistical procedure used to determine if there is no association between two variables or groups.

Critical Value Approach

A method in hypothesis testing that involves comparing the test statistic to a critical value to decide whether to reject the null hypothesis.

Observed Values

Data points that have been collected or measured from an experiment or survey.