A CPA Specializes in Helping Businesses Evaluate Their Future Prospects

question 26

Multiple Choice

A CPA specializes in helping businesses evaluate their future prospects and create successful budgets.As part of this process,the CPA invariably learns confidential information about a company's future.To avoid potential liability,the CPA's engagement letter states upfront that "all information learned after the commencement of services shall not be subject to the duty of confidentiality." This CPA:

• A) May utilize for its own benefit information learned from this budgeting engagement because of this express waiver provision
• B) May utilize for its own benefit information learned from this budgeting engagement because the duty of confidentiality does not apply to management consulting engagements
• C) May not utilize information learned from this client relationship because the client did not give its specific consent
• D) May not utilize information learned from this client relationship because the duty of confidentiality can never be waived

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Definitions:

Methanogens

Microorganisms that produce methane as a metabolic byproduct in anoxic conditions, often found in wetlands or the guts of animals.

Halophiles

Microorganisms that thrive in high-salt environments, often found in places like salt lakes and the Dead Sea.

Prokaryotes

Unicellular organisms that lack a distinct nucleus and membrane-bound organelles, including bacteria and archaea.

Acellular

Consisting of, or pertaining to, non-cellular structure, lacking cells.