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

---

Definitions:

Retirement Account

A financial arrangement designed to replace employment income upon retirement, often offering tax benefits.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets, research, and responsive business strategy planning.

Forecasting Technique

Methods used to predict future events or trends based on historical data analysis.

Scenario Analysis

A planning tool used to analyze possible future events by considering alternative possible outcomes or scenarios.