According to the AICPA's Code of Professional Conduct,if a CPA

question 14

Multiple Choice

According to the AICPA's Code of Professional Conduct,if a CPA renders more than ten hours of nonaudit services to an audit client,the CPA :

• A) Automatically is a covered member on the audit
• B) Automatically prevents the CPA firm from satisfying the independence requirement under all circumstances
• C) Automatically prevents the CPA firm from satisfying the independence requirement if the CPA is a partner in the CPA firm performing the audit
• D) Automatically prevents the CPA firm from satisfying the independence requirement if the CPA has a friend who works in the compilation, processing, or presentation of the audit client's financial statements

---

Definitions:

Revenue Recognition

An accounting principle that determines the specific conditions under which income becomes realized or realizable, and thus recognized as revenue.

Property Taxes

Taxes levied by local governments based on the assessed value of real property.

Revenue Recognition

The accounting principle that revenue should be recorded when it is earned, regardless of when the payment is received.

Federal Grant

A sum of money given by the federal government to a state, organization, or individual for a specific purpose or project.