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:

Corporations

Legal entities that are separate from their owners, providing limited liability to its shareholders and having the capacity to enter contracts, sue, and be sued.

Independent Expenditure

Money spent by individuals or groups to support or oppose political candidates or issues, without coordinating directly with candidates or their campaigns.

Benefit Corporations

A type of for-profit corporate entity, which includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Profitable

A financial state where revenues exceed expenses, generating a positive financial gain from business operations.