Julie Webb, CPA takes out an automobile loan with First National Bank of Wellville (FNBW) while attending the University of Wellville. Julie graduates one year later and is hired as an auditor by Best and Driftwood, LLP. Her first assigned audit engagement is with First National Bank of Wellville, a client of Best and Driftwood. As a new audit assistant, Julie continues to pay her automobile loan
payments each month. Which of the following best describes Julie's independence status?
a. Impaired because Julie has a direct financial interest in FNBW.
b. Impaired because Julie has a material indirect financial interest in FNBW.
c. Not impaired because Julie has an immaterial indirect financial interest in FNBW.
d. Not impaired because Julie is permitted to take normal loans from FNBW.
d
You might also like to view...
If A and B are independent events with P(A) = 0.38 and P(B) = 0.55, then P(A|B) =
A. 0.209. B. 0.000. C. 0.550. D. 0.380.
Tonale Company began operations in 2014 . During the first two years of operations, Tonale made undiscovered errors in taking its year-end inventories that overstated 2014 ending inventory by $50,000 and overstated 2015 ending inventory by $40,000 . The combined effect of these errors on reported income is 2014 2015 2016
a. overstated $50,000 overstated $90,000 understated $40,000 b. overstated $50,000 overstated $40,000 not affected c. understated $50,000 understated $90,000 not affected d. overstated $50,000 understated $10,000 understated $40,000
The performance measure that uses after-tax operating income and the actual cost of capital employed is
A) return on investment (ROI). B) residual income. C) economic value added (EVA). D) margin. E) turnover.
Talking with my boss about ways to reduce costs ____ do no good
A) won't B) will C) will not