A CPA Firm Audits Zaxstation,Inc

question 15

Multiple Choice

A CPA firm audits Zaxstation,Inc.To avoid impairing the CPA firm's independence,members of this CPA firm may never:

• A) Authorize capital expenditures for the company, even if the projects are worthwhile
• B) Authorize junior staff members who have not yet passed the CPA exam to perform required audit procedures
• C) Evaluate whether the company's internal controls have weaknesses or deficiencies
• D) Suggest changes to the company's selection of accounting policies

---

Definitions:

Equivalent Units

A term used in cost accounting to express the amount of materials or labor consumed in terms of fully completed units of output.

Process Operations

A type of manufacturing operation that continuously produces products or processes materials without distinct batches.

Continuous Flow

A production method used to manufacture, produce, or process materials without interruption.

Production Activity

The process of transforming raw materials into finished goods or services.