A CPA's Client Base Includes Both Publicly Traded Corporations and Smaller

question 8

Multiple Choice

A CPA's client base includes both publicly traded corporations and smaller privately-owned clients.Some of these clients require audits,and others only require bookkeeping and tax compliance services.If the CPA wishes to sell her professional practice to another CPA firm,she may disclose to the prospective buyer information concerning:

• A) only the publicly traded clients
• B) only the clients for whom she issues an audit opinion
• C) all information requested, as long as she takes reasonable precautions to ensure that the prospective buyer does not disclose sensitive client information shown to it
• D) none of these clients, due to the duty of confidentiality

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Definitions:

Permissive

A style or approach characterized by a high degree of freedom and leniency, often used to describe parenting or leadership styles.

Parenting

The act of rearing children which includes providing care, education, moral guidance, and emotional support.

Identity Status

Refers to the stages in the process of developing a sense of self or identity, often explored during adolescence.

Marcia's Theory

A psychological theory by James Marcia that categorizes an individual's identity development during adolescence into four statuses based on exploration and commitment.