The Undue Influence Threat Is Most Likely to Be Present

question 36

Multiple Choice

The undue influence threat is most likely to be present when:

• A) A client and a CPA disagree over whether a change in accounting principle has a material effect on the client's reported results
• B) A client and a CPA disagree over whether the valuation model selected by the client for expensing compensation costs associated with employee grants of stock options adequately reflects the economic costs associated with this expense
• C) A CPA firm generates 19% of its total revenues from services provided to a corporation and its seven subsidiaries
• D) A CPA gives its client a "one-time only" 20% discount on fees so the CPA firm can acquire a new audit client

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Definitions:

Conflict Perceptions

The way individuals or groups perceive the presence of disagreement, opposition, or incompatibility.

Conflict Outcomes

The consequences or results that arise from conflicts within or between groups, affecting relationships and performance.

Manifest Conflict

A type of conflict that becomes openly expressed or visible in behavior, as opposed to being hidden or suppressed.

Emotional Intelligence

The skill to recognize, govern, and articulate emotional states, while also managing relationships with others carefully and compassionately.