In Which of the Following Situations Would a Public Accountant

question 17

Multiple Choice

In which of the following situations would a public accountant (PA) still be considered independent?

• A) The PA received a set of professional-quality, graphite golf clubs from a client as an expression of appreciation for the quality of the work performed.
• B) The PA is suing the client for non-payment of fees.
• C) The fees from one audit client comprise 65% of the PA's total billings for the year.
• D) The PA serves in an honorary and non-participating role as a director for a non-profit audit client.

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Definitions:

Flashbulb Memory

A highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential (or emotionally arousing) news was heard.

Retention Cue

A retention cue is a stimulus or reminder that aids in the recall of information from memory.

Vivid Memory

A particularly clear and detailed memory of an event or moment, often with emotional significance, that remains strong over time.

Ignoring Base Rates

Involves disregarding statistical information in favor of anecdotal evidence when making judgments.