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Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004 Exercise 28
In which of the following circumstances will a CPA who audits XM Corporation lack independence
a. The CPA is a director of, but does not control, YN Corporation, which has a loan from XM.
b. The CPA and XM's president each owns 25% of FOB Corporation, a closely held company.
c. The CPA has an automobile loan from XM, a financial institution. The loan is collateralized by the automobile.
d. The CPA reduced XM's usual audit fee by 40% prior to the audit because XM's financial condition was unfavorable.
a. The CPA is a director of, but does not control, YN Corporation, which has a loan from XM.
b. The CPA and XM's president each owns 25% of FOB Corporation, a closely held company.
c. The CPA has an automobile loan from XM, a financial institution. The loan is collateralized by the automobile.
d. The CPA reduced XM's usual audit fee by 40% prior to the audit because XM's financial condition was unfavorable.
Explanation
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The AICPA was established in the 1880s, ...
Auditing and Assurance Services 1st Edition by Iris Stuart
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