Which of the Following Is True in When a Conflict

question 21

Multiple Choice

Which of the following is true in when a conflict of interest exists in an engagement?

• A) A potential conflict of interest need not be disclosed if it does not affect the independence of the forensic accountant.
• B) A verbal consent is sufficient to acknowledge the potential conflict and waive any objections related thereto in the presence of a judge.
• C) An engagement in which a potential conflict has been identified can be accepted if the conflict does not impair the objectivity of the forensic accountant to a large extent.
• D) If a potential conflict of interest is identified, it must be fully disclosed to the client before the engagement is accepted.

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Definitions:

Effective Yield

The total yield of a bond once all charges are factored in, expressed as an annual percentage.

Present Value Factors

Numeric factors used to calculate the present value of a future amount, taking into account a specific interest rate and time period.

Bond Discount

The variance between the face value of a bond and the price at which it's sold, occurring when the bond sells below its face value.

Carrying Value

The amount an asset is valued at in a company's books after accounting for depreciation and amortization.