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

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Definitions:

Short-Term Memory

A component of memory where small amounts of information can be kept for a short period of time.

Leaky Bucket

A metaphor often used in economics and business to describe a process where resources are lost or wasted.

Critical Thinking

The process of objectively analyzing and evaluating an issue to form a judgment.

Memory

The faculty by which the mind stores and remembers information.