A Direct Financial Interest Violates Independence in Which of the Following

question 90

Multiple Choice

A direct financial interest violates independence in which of the following circumstances?

• A)When close relatives such as nondependent children, brothers, and sisters have a significant financial interest in the client
• B)When close relatives such as nondependent children, brothers, and sisters have any financial interest in the client
• C)When the CPA owns shares in a mutual fund that has an ownership interest in the client
• D)When close relatives such as brother, sister, or in-laws are employed by the client

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Definitions:

On-time Performance

A measurement of the ability of a service or supplier to deliver goods or services at the scheduled time.

Supplier Selection

The process of evaluating and choosing suppliers based on criteria such as price, quality, reliability, and service to ensure the best value for the purchasing organization.

Design Collaboration Capability

The ability of teams or organizations to work together across disciplines to create solutions or products that meet customer or user needs.

Supplier Selection

The process of identifying and engaging with suppliers who can provide goods or services that meet an organization's standards and requirements.