A CPA Has Been Asked by an Engaged Couple to Help

question 2

Multiple Choice

A CPA has been asked by an engaged couple to help them budget the amount that they can afford to spend on their upcoming wedding.Both the groom and the bride approached the CPA together and met with him together.The CPA has no prior relationship with either of these individuals.The groom and the bride each have agreed to pay one-half of the CPA's fees.The CPA:

• A) Currently does not have an accountant-client conflict of interest, but must be alert to the possibility that one will arise
• B) Currently does not have a dual-client conflict of interest, but must be alert to the possibility that one will arise
• C) Currently has a conflict of interest and should not accept this professional engagement
• D) Currently has a conflict of interest, and should agree to render professional services to this couple only if they give their specific consent to waive this conflict of interest

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Definitions:

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and equity at two or more points in time, allowing for comparison and analysis.

Current Income Statement

A financial report showing a company's revenues, expenses, and net income over a specific period, typically a quarter or year.

Prior Year's Income Statement

A financial report that shows a company's financial performance in terms of revenue, expenses, and net income for the previous fiscal year.

Statement of Cash Flows Worksheet

A financial document used to analyze and prepare the statement of cash flows, showing how cash changes from operating, investing, and financing activities.