Which of the Following Is Least Likely to Impair a CPA

question 41

Multiple Choice

Which of the following is least likely to impair a CPA firm's independence with respect to an audit client in the Oklahoma City office of a national CPA firm?

• A) A partner in the Oklahoma City office owns an immaterial amount of stock in the client.
• B) A partner in the Jersey City office owns 25% of the client's stock.
• C) A partner in the Oklahoma City office, who does not work on the audit engagement, previously served as controller for the audit client.
• D) A partner in the Chicago office previously served as vice president of finance for the audit client.

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Definitions:

Lanugo

Fine, soft hair, especially that which covers the body and limbs of a newborn human.

Icteric Sclera

The yellowing of the whites of the eyes, which is a symptom of jaundice resulting from elevated bilirubin levels in the blood.

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in vertebrates. Its levels are measured to assess liver function.

Bacterial Endocarditis

An infection of the inner lining of the heart chambers and valves, typically caused by bacteria.