Which of the Following Statements Is FALSE When a PA

question 1

Multiple Choice

Which of the following statements is FALSE when a PA has an investment in a nonclient investor?

• A)This investment may be a direct or material indirect financial interest that will diminish independence with respect to a client investee.
• B)Independence is not impaired,as long as the PA does not have significant influence over the actions or financial statements of the nonclient investor.
• C)Independence is impaired when the PA's investment gives him or her significant influence over the actions of the nonclient investor,which might in turn influence the client investee.
• D)The independence of the PA is always impaired when a PA has an investment in a nonclient investor because it puts him or her in a position similar to that of a member of management of the client investee.

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Definitions:

Software

A collection of data or instructions that tell a computer how to work. This is in contrast to hardware, which is the physical arrangement of components that the software runs on.

CD-R

Short for Compact Disc-Recordable, a type of digital storage medium that allows users to record data once and then prevent further alterations.

Record Data

Record data involves documenting and storing information or data collected from experiments, observations, or encounters for analysis and reference.

Permanent

Describes something that is intended to last or remain unchanged indefinitely.