For the Same Client,SEC Prohibits a CPA Firm from Providing

question 49

Multiple Choice

For the same client,SEC prohibits a CPA firm from providing which of the following services?

• A)tax and external audit services
• B)internal and external audit services.
• C)management letter and audit services.
• D)internal control and financial statement audits.

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Definitions:

Interest Revenue

Income earned from investments, loans, and other sources requiring the borrower to pay interest.

Bond Investments

Financial investments in debt securities issued by corporations or governments, which pay interest and are meant to be repaid at maturity.

Amortized

The gradual reduction of a debt over time by making regular payments that cover both principal and interest.

Held-To-Maturity

Held-to-maturity refers to investment securities that a company has the intent and ability to hold until a specified maturity date.