Question
A CPA Firm only prepares tax returns for its clients. The CPA Firm wants to prepare the tax return of a Sister Company of one
A CPA Firm only prepares tax returns for its clients. The CPA Firm wants to prepare the tax return of a Sister Company of one of its Clients. Both the Sister Company and the Client are material to the Parent company. Under these facts alone, the CPA Firm:
(a) must remain independent from the Sister Company due to the Affiliate definition;
(b) must remain independent from the Sister Company due to the Network Firm definition.
(c) must remain independent from the Sister Company in accordance with Rule 1.200.000 et seq, the Independence Rule
(d) none of the above
(10) A CPA Firm is engaged in a Financial Statement Attest Engagement for Ziggy Corporation. David Bowie Corp owns 35% of Ziggy Corp, and Ziggy Corp represents approximately 15% of David Bowie Corp's assets and revenue. The CPA Firm must remain independent of David Bowie because:
(a) David Bowie Corp and Ziggy Corp are a Network Firm.
(b) David Bowie Corp is an affiliate under A.
(c) David Bowie Corp is an affiliate under D.
(d) David Bowie Corp and the CPA firm are a Network Firm.
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