A CPA Does Not Own Any Stock in an Audit

question 27

Essay

A CPA does not own any stock in an audit client.However,the CPA's great-uncle,who lives in Finland,does own stock in this client.
a. Does the uncle's stock holding impair the CPA's independence?
b. The CPA knows that he is the sole beneficiary of this uncle's will and the uncle is 97-years-old. Is the CPA's independence impaired?
c. The CPA just learned that his uncle died. Is the CPA's independence impaired?

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Definitions:

Lipid Digestion

The biochemical process through which lipids (fats and oils) are broken down into smaller molecules, such as fatty acids and glycerol, to be absorbed by the body.

Protein Synthesis

The process by which cells build proteins based on the genetic instructions provided by DNA and mediated by RNA.

Intrinsic Factor

A glycoprotein secreted by the stomach's parietal cells necessary for the absorption of vitamin B12 in the small intestine.

Vitamin B12

An essential nutrient important for maintaining nerve cells and aiding in the production of DNA and red blood cells.