The Undue Influence Threat Is Most Likely to Be Present

question 36

Multiple Choice

The undue influence threat is most likely to be present when:

• A) A client and a CPA disagree over whether a change in accounting principle has a material effect on the client's reported results
• B) A client and a CPA disagree over whether the valuation model selected by the client for expensing compensation costs associated with employee grants of stock options adequately reflects the economic costs associated with this expense
• C) A CPA firm generates 19% of its total revenues from services provided to a corporation and its seven subsidiaries
• D) A CPA gives its client a "one-time only" 20% discount on fees so the CPA firm can acquire a new audit client

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Definitions:

Homosexuals

Individuals attracted to members of the same sex.

Professionals

Professionals are individuals who possess specialized knowledge, skills, and often credentials in a particular field, engaging in activities considered a profession.

Inappropriate Touching

Touching another person in a way that is unwanted, without consent, or in a sexual manner that is inappropriate for the context or relationship.

Assailant

A person who physically attacks another, often used in contexts related to physical or sexual violence.