The Materiality of a Conflict of Interest Should Be Evaluated

question 32

Multiple Choice

The materiality of a conflict of interest should be evaluated from the perspective of:

• A) Whether a reasonable client would consider the conflict to be material
• B) Whether a client, acting unreasonably or reasonably, would consider the conflict to be material
• C) Whether an objective observer who is reasonably informed about the surrounding facts would conclude that a conflict of interest is material
• D) Whether the CPA subjectively, from his or her own vantage point, has concerns about two or more material interests clashing

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Definitions:

Corporate Communications

Strategic management of information and communication processes within a company, including internal and external communications.

Secure

Refers to measures or conditions that ensure protection from harm, attack, or unauthorized access.

Broadcast Method

The technique or medium used to distribute content to a wide audience through television, radio, or the internet.

Internally

Pertains to actions or processes occurring within an organization, group, or system, as opposed to externally or outside it.