Status as a "Covered Member" Is Important in Determining Independence

question 22

Multiple Choice

Status as a "covered member" is important in determining independence because CPAs who are classified as a "covered member" lack the independence to conduct an audit if:

• A) They have an indirect ownership interest in even a single share of stock outstanding in an audit client
• B) They refuse to subordinate their best judgment to the wishes of their client
• C) Their college-age, dependent child works in the client's warehouse during the summer as a shipping clerk
• D) Their sister is an attorney who works as the company's General Counsel

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Definitions:

Western American Migrants

Individuals or groups who moved to the western territories of the United States during the period of westward expansion.

Native Americans

Indigenous peoples of the Americas, encompassing a wide variety of cultures, languages, and histories prior to European colonization.

Treaties

Formal agreements between two or more sovereign states, governed by international law, covering a wide range of topics such as peace, trade, and borders.

Harriet Beecher Stowe

An American abolitionist and author, best known for her novel "Uncle Tom's Cabin," which depicted the harsh life for African Americans under slavery.