1) The CPA is to receive 10% of the sales price of a product he or she has recommended to the client.This arrangement violates the AICPA Code in which of the following circumstances -

a.The client is an audit client, but the CPA has disclosed the arrangement to the client.

b.The client is a tax client, but the CPA has disclosed the arrangment to the client.

c.The client is a consulting client, but the CPA has not disclosed the arrangement.

d.a and c

e.b and c

2) Which of the following situations could exist without impairing independence?

a.A staff auditor owns a share in that client that represents less than 1% of the staff auditor's net worth.

b.A staff auditor owns a 1% interest in a mutual fund that owns 1% of the staff auditor's audit client.

c.A staff auditor is a trustee of a trust established by a sibling and the trust owns less than 1% of the outstanding stock of the staff auditor's audit client.

d.A staff auditor's sibling is the CFO of the staff auditor's audit client.