In Which of the Following Instances Would Impair a CPA's

question 70

Multiple Choice

In which of the following instances would impair a CPA's independence when they have been retained as the auditor?
I. A charitable organization where the CPA serves as treasurer.
II. A municipality where the CPA owns $250,000 of the $25 million outstanding bonds of the municipality.
III. A company that the CPA's investment club has a one-tenth investment interest.

• A) I and II
• B) I and III
• C) II and III
• D) I, II, and III

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Definitions:

Americans

Citizens or nationals of the United States, also referring collectively to the inhabitants of the country.

Food Stamps

is a government assistance program that provides low-income individuals and families with funds to purchase groceries, formally known as the Supplemental Nutrition Assistance Program (SNAP).

Lorenz Curve

A graphical representation used to illustrate the distribution of income or wealth within a population, indicating inequality.

Equally Distributed

A situation or condition in which resources, wealth, or opportunities are shared evenly amongst all participants or members of a group.