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Under Which of the Following Circumstances Would the Independence of a CPA

Question 4

Multiple Choice

Under which of the following circumstances would the independence of a CPA be considered impaired if the CPA,who also is an attorney,serves as auditor and provides legal services to the same client?


A) When the CPA, as legal agent, consummates a business acquisition for the client.
B) When the CPA's audit fees and legal fees are not billed separately.
C) When the CPA uses legal expertise to research a question of income tax law.
D) When the legal services consist of an analysis of the terms of an existing lease agreement.

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