Richard, CPA, performs accounting services for Norton Corporation. Norton wishes to offer shares to the public and asks Richard to audit the financial statements. Richard refers Norton to Cruz, CPA, who is more competent in the area of registration statements. Cruz performs the audit of Norton's financial statements and subsequently thanks Richard for the referral by giving Richard a portion of the audit fee. Richard accepts the fee. Who, if anyone, has violated professional ethics? a. Only Richard b. Both Richard and Cruz c. Only Cruz d. Neither Richard nor Cruz

Richard, CPA, performs accounting services
for Norton Corporation. Norton wishes to
offer shares to the public and asks Richard
to audit the financial statements. Richard
refers Norton to Cruz, CPA, who is more
competent in the area of registration
statements. Cruz performs the audit of
Norton's financial statements and
subsequently thanks Richard for the referral
by giving Richard a portion of the audit fee.
Richard accepts the fee. Who, if anyone,
has violated professional ethics?
a. Only Richard
b. Both Richard and Cruz
c. Only Cruz
d. Neither Richard nor Cruz
by

1 Answer

Answer :

Both Richard and Cruz
by

Related questions

The Code of Ethics would be violated if a CPA accepted a fee for services and the fee was: a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. Based on the results of judicial proceedings in a tax matter. d. Payable after a specified finding was attained in a review of financial statements

Description : The Code of Ethics would be violated if a CPA accepted a fee for services and the fee was: a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. ... in a tax matter. d. Payable after a specified finding was attained in a review of financial statements

Last Answer : Payable after a specified finding was attained in a review of financial statements

A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An audit. b. A review. c. A compilation used only by management. d. An audit of prospective financial information

Description : A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An audit. b. A review. c. A compilation used only by management. d. An audit of prospective financial information

Last Answer : A compilation used only by management.

A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An auditb. A review. c. A compilation used only by management. d. An audit of prospective financial information..

Description : A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An audit. b. A review. c. A compilation used only by management. d. An audit of prospective financial information.

Last Answer : A compilation used only by management.

The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Determine accounting practices that were consistently applied. b. Maintain an impartial attitude on all matters which come under his review. c. Determine the materiality of items. d. Insist on all matters regarding audit procedures.

Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Determine accounting practices that were consistently ... . c. Determine the materiality of items. d. Insist on all matters regarding audit procedures.

Last Answer : Maintain an impartial attitude on all matters which come under his review.

The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Insist on all matters regarding audit procedures. b. Determine the materiality of items. c. Determine accounting practices that were consistently applied. d. Maintain an impartial attitude on all matters which come under his review

Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Insist on all matters regarding audit ... were consistently applied. d. Maintain an impartial attitude on all matters which come under his review

Last Answer : Maintain an impartial attitude on all matters which come under his review

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. b. Obtain a knowledge of matters that relates to the nature of the entity's business. c. Refer a substantial portion of the audit to another CPA who will act as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Description : An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. ... as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business.

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage, financial experts familiar with the nature of the business entity. b. Obtain a knowledge of matters that relates to the nature of the entity's business. c. Refer a substantial portion of the audit to another cpa who will act as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Description : An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage, financial experts familiar with the nature of the business entity. ... as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business.

Eman, a CPA, has a law practice. Eman has recommended one of his clients to Noel, a CPA. Noel has agreed to pay Eman 10% of the fee for services rendered by Noel to Eman's client. Who, if anyone, is in violation of the Code of Ethics? a. Both Eman and Noel b. Eman only c. Neither Eman and Noel d. Noel only

Description : Eman, a CPA, has a law practice. Eman has recommended one of his clients to Noel, a CPA. Noel has agreed to pay Eman 10% of the fee for services rendered by Noel to Eman's client. Who, if anyone, is in ... the Code of Ethics? a. Both Eman and Noel b. Eman only c. Neither Eman and Noel d. Noel only

Last Answer : Both Eman and Noe

Which of the following acts of the CPA would be most likely a violation of the Code of Ethics? a. Assisting a client in preparing a financial forecast. b. Acting as auditor of a non-charitable organization with audit client serving as president. c. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding. d. Having an immaterial loan to the president of an audit

Description : Which of the following acts of the CPA would be most likely a violation of the Code of Ethics? a. Assisting a client in preparing a financial forecast. b. Acting as auditor of a non- ... upon the result of an administrative proceeding. d. Having an immaterial loan to the president of an audit

Last Answer : Having an immaterial loan to the president of an audit

Under the Code of Ethics, a CPA may not: a. Perform bookkeeping services for an audit client. b. Perform advisory services for an audit client. c. Have any direct financial interest in a client during the period covered by the financial statements. d. Having any joint, closely held investments with a principal stockholder of an audit client during the period of audit engagement which is not material in relation to his ne

Description : Under the Code of Ethics, a CPA may not: a. Perform bookkeeping services for an audit client. b. Perform advisory services for an audit client. c. Have any direct financial interest in a client ... of an audit client during the period of audit engagement which is not material in relation to his ne

Last Answer : Have any direct financial interest in a client during the period covered by the financial statements.

A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client’s board of directors. b. Accounting information system design and implementation. c. Tax return preparation as approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Description : A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client's board of directors. b. ... approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Last Answer : Tax return preparation as approved by the board of directors.

A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client’s board of directors. b. Accounting information system design and implementation. c. Tax return preparation as approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Description : A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client's board of directors. b. ... approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Last Answer : Tax return preparation as approved by the board of directors.

A CPA firm is considered independent when it performs which of the following services for a publicly-traded audit client? a. Serving as a member of the client's board of directors. b. Determining which accounting policies will be adopted by the client. c. Accounting information system design and implementation. d. Tax return preparation as approved by the board of directors.

Description : A CPA firm is considered independent when it performs which of the following services for a publicly-traded audit client? a. Serving as a member of the client's board of directors. b. ... information system design and implementation. d. Tax return preparation as approved by the board of directors.

Last Answer : Tax return preparation as approved by the board of directors.

Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid certificate issued by the Board of Accountancy. c. A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client. d. A sole proprietor, or each partner or person occupying a position similar to that of a partner and each staff in a practice providing professional services

Description : Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid ... a position similar to that of a partner and each staff in a practice providing professional services

Last Answer : A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client.

Which of the following does not constitute a practice of accountancy? a. A person holding out himself as one skilled in the knowledge, science and practice of accounting and as a qualified person to render professional services as a CPA to more than one clienb. A person representing his/her employer before government agencies on tax arid other accounting related matters. c. A person in educational institution teaching accounting, auditing, business law, taxation or other technically related subjects. d. A person is appointed as a marketing director of a government owned and controlled corporation.t

Description : Which of the following does not constitute a practice of accountancy? a. A person holding out himself as one skilled in the knowledge, science and practice of accounting and as a qualified person ... d. A person is appointed as a marketing director of a government owned and controlled corporation.

Last Answer : A person is appointed as a marketing director of a government owned and controlled corporation.

The Code of Professional Conduct would be violated if a member accepted a fee for services and the fee was a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. Based on the result of judicial proceedings. d. Payable after a specified finding was attained

Description : The Code of Professional Conduct would be violated if a member accepted a fee for services and the fee was a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. Based on the result of judicial proceedings. d. Payable after a specified finding was attained

Last Answer : Payable after a specified finding was attained

The Code of Professional Conduct would be violated if a member accepted a fee for services and the fee was a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. Based on the result of judicial proceedings. d. Payable after a specified finding was attained

Description : The Code of Professional Conduct would be violated if a member accepted a fee for services and the fee was a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. Based on the result of judicial proceedings. d. Payable after a specified finding was attained

Last Answer : Payable after a specified finding was attained

No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.

Description : No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.

Last Answer : Maintains his independence

Generally accepted accounting principles (GAAP) are distinguished from generally accepted auditing standards (GAAS) in that: a. GAAP are the principles auditors follow when conducting an audit, while GAAS are the standards for presentation of financial statements and underlying transactions. b. GAAP are the principles for presentation of financial statements and underlying transactions, while GAAS are the standards that the auditors should follow when conducting an audit. c. When GAAP are violated, sufficiently strong GAAS may make up for most GAAP deficiencies. d. GAAP are promulgated by the SEC, while GAAS are promulgated by the PFRC

Description : Generally accepted accounting principles (GAAP) are distinguished from generally accepted auditing standards (GAAS) in that: a. GAAP are the principles auditors follow when conducting an audit, while GAAS ... deficiencies. d. GAAP are promulgated by the SEC, while GAAS are promulgated by the PFRC

Last Answer : GAAP are the principles for presentation of financial statements and underlying transactions, while GAAS are the standards that the auditors should follow when conducting an audit.

It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ensure compliance with accounting and auditing standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review

Description : It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ... standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review

Last Answer : Quality review

Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Description : Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Last Answer : Ordinary negligence

Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Description : Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Last Answer : Ordinary negligence

Which of the following most completely describes how independence has been defined by the CPA profession? a. Performing an audit from the viewpoint of the public. b. Avoiding the appearance of significant interests in the affairs of an audit client. c. Possessing the ability to act with integrity and objectivity. d. Possessing the ability to act professionally and accordance with a professional code of ethics.

Description : Which of the following most completely describes how independence has been defined by the CPA profession? a. Performing an audit from the viewpoint of the public. b. Avoiding the appearance of ... . d. Possessing the ability to act professionally and accordance with a professional code of ethics.

Last Answer : Possessing the ability to act with integrity and objectivity.

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement.

Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Referral fees on audit jobs. b. Competitive bidding on audit jobs. c. Contingent fees on audit jobs. d. Commissions for obtaining client services on audit jobs

Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Referral fees on audit jobs. b. Competitive bidding on audit jobs. c. Contingent fees on audit jobs. d. Commissions for obtaining client services on audit jobs

Last Answer : Competitive bidding on audit jobs

Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Competitive bidding on audit jobs. b. Contingent fees on audit jobs. c. Commissions for obtaining client services on audit jobs. d. Referral fees on audit jobs.

Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Competitive bidding on audit jobs. b. Contingent fees on audit jobs. c. Commissions for obtaining client services on audit jobs. d. Referral fees on audit jobs.

Last Answer : Competitive bidding on audit jobs

The CPA shall not concurrently engage in any business or occupation which impairs his objectivity in rendering professional services or which is inconsistent with his practice or employment. This provision of the code of ethics is applicable to: a. Only to CPAs engaged in public accountancy. b. CPAs engaged in public accountancy or employed in a private enterprise. c. CPAs engaged in public accountancy or employed in a private enterprise or government agency. d. All CPAs engaged in public accountancy, or employed in a private enterprise, a government agency or an educational institution

Description : The CPA shall not concurrently engage in any business or occupation which impairs his objectivity in rendering professional services or which is inconsistent with his practice or employment. This ... accountancy, or employed in a private enterprise, a government agency or an educational institution

Last Answer : All CPAs engaged in public accountancy, or employed in a private enterprise, a government agency or an educational institution

The IFAC Code of Professional Conduct will ordinarily be considered to have been violated when the member represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that thea. Actual fee would be substantiallyhigher.b. Actual fee would be substantially lowerthan the fees charged by other membersfor comparable services.c. Fee was a competitive bid.d. Member would not be independent

Description : The IFAC Code of Professional Conduct will ordinarily be considered to have been violated when the member represents that specific consulting services will be performed for a stated fee and it is apparent ... for comparable services. c. Fee was a competitive bid. d. Member would not be independent

Last Answer : Actual fee would be substantially higher

A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting firm made up of three non-CPA practitioners. c. Issued an unqualified opinion on the 2006 financial statements when fees for the 2005 audit were unpaid. d. Purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period

Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an ... bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period

Last Answer : Issued an unqualified opinion on the 2006 financial statements when fees for the 2005 audit were unpaid

A CPA who is engaged to prepare an income tax return has a duty to prepare it in such a manner that the tax is: a. The legal minimum. b. Computed in conformity with generally accepted accounting principles. c. Supported by the client’s audited financial statements. d. Not subject to change upon audit

Description : A CPA who is engaged to prepare an income tax return has a duty to prepare it in such a manner that the tax is: a. The legal minimum. b. Computed in conformity with generally accepted ... principles. c. Supported by the client's audited financial statements. d. Not subject to change upon audit

Last Answer : The legal minimum

A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting firm made up of three non-CPA practitioners. c. Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid. d. Purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period.

Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting ... firm's practice of monthly write-ups for a percentage of fees received over a three-year period.

Last Answer : Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid

In which of the following circumstances would a CPA be bound by ethics to refrain from disclosing any confidential information obtained during the course of a professional engagement? a. The CPA is issue a summons enforceable by a court order which orders the CPA to present confidential information. b. A major stockholder of a client company seeks accounting information from the CPA after management declined to disclose the requested information. c. Confidential client information is made available as part of a quality review of the CPA's practice by a peer review team authorized by the PICPA. d. An inquiry by a disciplinary body of PICPA requests confidential client information

Description : In which of the following circumstances would a CPA be bound by ethics to refrain from disclosing any confidential information obtained during the course of a professional engagement? a. The CPA is ... the PICPA. d. An inquiry by a disciplinary body of PICPA requests confidential client information

Last Answer : A major stockholder of a client company seeks accounting information from the CPA after management declined to disclose the requested information

Whenever a CPA professional is engaged to perform an audit of financial statements according to Philippine Standards on Auditing, he required to comply with those standards in order to a. Eliminate audit risk. b. Eliminate the professional judgment in resolving audit issues. c. Have a measure of the quality of audit performance. d. To reduce the audit program to be prepared by the auditor.

Description : Whenever a CPA professional is engaged to perform an audit of financial statements according to Philippine Standards on Auditing, he required to comply with those standards in order to a. Eliminate audit risk ... of audit performance. d. To reduce the audit program to be prepared by the auditor.

Last Answer : Have a measure of the quality of audit performance.

Which of the following is not one of the general principles governing the audit of financial statements? a. The auditor should conduct the audit in accordance with PSA. b. The auditor should comply with the Philippine Code of Professional Ethics. c. The auditor should plan and perform the audit with an attitude of professional skepticism. d. The auditor should obtain sufficient appropriate evidence primarily through inquiry and analyticaprocedures to be able to draw reasonable conclusions.l

Description : Which of the following is not one of the general principles governing the audit of financial statements? a. The auditor should conduct the audit in accordance with PSA. b. The ... appropriate evidence primarily through inquiry and analytical procedures to be able to draw reasonable conclusions.

Last Answer : The auditor should obtain sufficient appropriate evidence primarily through inquiry and analytical procedures to be able to draw reasonable conclusions

A CPA is conducting the first audit of a client’s financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. This procedure is a. Acceptable if the CPA refers in the audit report to reliance upon the predecessor auditor's work. b. Required if the CPA is to render an unqualified opinion. c. Unacceptable because the CPA should bring an independent viewpoint to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Description : A CPA is conducting the first audit of a client's financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. ... to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Last Answer : Acceptable if the client and the predecessor auditor agree to it.

Compliance with the independence requirement is necessary whenever a CPA performs: a. Non-assurance services b. Professional services c. Tax consultancy services d. Assurance services

Description : Compliance with the independence requirement is necessary whenever a CPA performs: a. Non-assurance services b. Professional services c. Tax consultancy services d. Assurance services

Last Answer : Assurance services

This refers to those persons who hold a valid certificate issued by the Board of Accountancy. a. Senior accounting practitioner. b. Professional accountant. c. Professional accountant in public practice. d. Audit associate.

Description : This refers to those persons who hold a valid certificate issued by the Board of Accountancy. a. Senior accounting practitioner. b. Professional accountant. c. Professional accountant in public practice. d. Audit associate.

Last Answer : Professional accountant.

For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast

Description : For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast

Last Answer : Tax returns preparation

For which of the following services is a CPA professional required to be independent? a. Audits of historical financial statements b. Review services c. Examination of prospective financial statements d. All of the above

Description : For which of the following services is a CPA professional required to be independent? a. Audits of historical financial statements b. Review services c. Examination of prospective financial statements d. All of the above

Last Answer : All of the above

For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast

Description : For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast

Last Answer : Tax returns preparation

For which of the following services is a CPA professional required to be independent? a. Audits of historical financial statements b. Review services c. Examination of prospective financial statements d. All of the above

Description : For which of the following services is a CPA professional required to be independent? a. Audits of historical financial statements b. Review services c. Examination of prospective financial statements d. All of the above

Last Answer : All of the above

In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of the audit senior holds a material financial interest in the client of which the senior is unaware. c. The spouse of a staff member on the audit has an immaterial common stock investment in the audit client. d. The partner in charge of the office's compensation is affected by office profitability, a portion of which arises from this audit

Description : In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of ... of the office's compensation is affected by office profitability, a portion of which arises from this audit

Last Answer : The spouse of a staff member on the audit has an immaterial common stock investment in the audit client

In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of the audit senior holds a material financial interest in the client of which the senior is unaware. c. The spouse of a staff member on the audit has an immaterial common stock investment in the audit client. d. The partner in charge of the office's compensation is affected by office profitability, a portion of which arises from this audit.

Description : In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of ... of the office's compensation is affected by office profitability, a portion of which arises from this audit.

Last Answer : The spouse of a staff member on the audit has an immaterial common stock investment in the audit client.