The Interpretations Related to the Rules Governing Objectivity or Independence

question 15

Multiple Choice

The interpretations related to the rules governing objectivity or independence allow ________.

• A) a public accountant (PA) to hold a material indirect interest in a client
• B) a PA to finance a home mortgage with a client if the mortgage is made under the client's normal lending procedures and terms
• C) a PA's spouse to hold a position as a director of a client's organization
• D) a PA to serve as a trustee of the pension fund of a client

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Definitions:

Self-actualization

Self-actualization is the realization or fulfillment of one's talents and potentialities, considered as the highest need in Maslow's hierarchy of needs.

Two-factor Theory

A psychological theory proposed by Herzberg that suggests job satisfaction and dissatisfaction arise from two different sets of factors: motivation and hygiene factors.

Employee Motivation

The amount of enthusiasm, dedication, and innovation employees contribute to their roles in a corporation.

Herzberg

Refers to the two-factor theory by Frederick Herzberg, which posits that certain factors in the workplace result in job satisfaction, while others lead to dissatisfaction, hence differentiating between 'motivators' and 'hygiene factors'.