To Preserve Their Independence Regarding Audit Clients,CPAs Should Not

question 25

Multiple Choice

To preserve their independence regarding audit clients,CPAs should not:

• A) Prepare suggested year-end adjusting entries
• B) Prepare suggested year-end closing entries
• C) Negotiate office leases on behalf of these clients
• D) Prepare financial projections that are based on management's assumptions

Realize the social and economic implications of sales and excise taxes, including their regressive nature.

Understand how the tax-transfer system affects income distribution.

Gain insights into international comparisons of tax progressivity.

Understand the concept of progressive, regressive, and proportional taxes, and their impact on different income groups.

---

Definitions:

Reflexiveness

The ability to analyze one's own behaviors, thoughts, and emotions critically and consider how they affect others.

Responsiveness

Tendency to be sensitive to the needs of others, including being sympathetic to others’ feelings and placing the feelings of others above one’s own feelings.