A CPA Firm Has Multiple Locations Throughout the Midwest of the United

question 1

Multiple Choice

A CPA firm has multiple locations throughout the Midwest of the United States.This firm has an audit client that is headquartered in Milwaukee,Wisconsin and the partner in charge of this audit is also located in the Milwaukee office of the firm.The audit client is a beverage manufacturer and the partner in charge of this audit is the Chairman of the firm's Food and Beverage Industry Audit Committee.To preserve the CPA firm's independence,which of the following individuals definitely must not own any direct interests in this beverage manufacturer?

• A) The aunt of the partner in charge
• B) A partner in the Oklahoma City office of this CPA firm who does not participate in rendering services to this client
• C) A partner in the Chicago office who also serves on the firm's Food and Beverage Industry Audit Committee
• D) A junior staff member in the Milwaukee office who spent 6 hours preparing a tax research memorandum relating to beverage sales taxes imposed on this manufacturer 's products

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Definitions:

Corrective Policy

Corrective Policy refers to government actions taken to fix imperfections in the market, aiming to improve economic efficiency and promote fairness.

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Government

The organized system or group of people governing an organized community, often a state, managing its public policy and affairs.

Lags

Delays in the effect of economic policies or other changes in the economy, which can affect the timing and efficiency of economic outcomes.