A CPA Firm Is Not Considered Independent When It Performs

question 39

Multiple Choice

A CPA firm is not considered independent when it performs which of the following services for a publicly traded audit client?

• A)tax return preparation as approved by the board of directors
• B)basic accounting recordkeeping and financial statement preparation
• C)accounting information system design and implementation
• D)both B and C
• E)none of the above

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Definitions:

Retail Store

A physical location where consumers can purchase goods or services directly from a business.

Market Segments

The process of dividing a target market into smaller, more defined categories of consumers who share similar characteristics and needs.

Principal Criteria

The main or most important standards used to evaluate options or make decisions.

Market-Product Grid

A tool for analyzing market segments by mapping out their size and growth potential against specific products and services.