Direct Ownership in a Client's Business Must Be Material to the CPA's

question 23

True/False

Direct ownership in a client's business must be material to the CPA's investment portfolio in order to violate the independence rule.

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Definitions:

External

Originating from outside, not confined within an entity or individual.

Achievement Motivation

The drive to excel, achieve in relation to a set of standards, or strive to succeed.

TAT

Thematic Apperception Test, a projective psychological test used to reveal a person's social drives or needs by their interpretation of ambiguous images.

Locus of Control

is a psychological concept that refers to individuals’ belief in their ability to control events affecting them, classified as either internal (belief in personal control) or external (belief that external forces dominate).