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:

Jungian

Pertaining to the psychological theories and ideas of Carl Jung, including concepts like the collective unconscious and archetypes.

Behaviourist

A person who specializes in behaviorism, a branch of psychology that focuses on observable behaviors and disregards mental processes.

Social Learning

The process of acquiring skills, behaviors, and attitudes through observing and imitating others.

Unconscious Forces

pertain to the mental processes that occur without our conscious awareness, influencing behaviors and thoughts, according to Freudian psychology.