Which of the Following Family Relationships Is Most Likely to Impair

question 61

Multiple Choice

Which of the following family relationships is most likely to impair a CPA's independence with respect to a particular audit client on which the CPA works as a "covered member"?

• A) A close relative has a material investment in that client of which the CPA is not aware.
• B) A cousin has an immaterial investment in the client of which the CPA is aware.
• C) The CPA's father is president of the audit client.
• D) The CPA's spouse participates in a savings plan sponsored by the client.

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Definitions:

Agrarian

Pertaining to agriculture or the cultivation of land, often used to describe societies primarily focused on farming.

Pay It Forward

The act of repaying the benefits one has received by providing benefits to others, rather than to the original benefactor.

Upstream Reciprocity

A concept in social psychology suggesting that the act of being helped often leads to an individual helping someone else other than their original benefactor.

Pro Social Behavior

Acts performed with the intention to benefit others, such as helping, sharing, or comforting.