MC 35 LO4 Phil Greb has a thriving practice in which he assists lawyers in preparing litigation dealing with accounting and auditing matters. Phil is "practising public accounting" if he a. uses his PA designation on his letterhead and business card. b. is in partnership with another PA. e practises in a limited partnership with other PAs. d never lets his clients know that he is a PA. MC36 LO4 CPA Ontario should remove its general prohibition against Pas taking commissions and contingent fees because a. CPAs prefer more price competition to less, b. commissions and contingent fees enhance audit independence. c the Charter of Rights will force the change anyway, d. objectivity is not always necessary in accounting and auditing services, MC 3-7 LOS A Smith is the auditor of Ajax Corporation. Her audit independence will not be considered impaired if she a owns $1,000 worth of Ajax shares, b has a spouse who owns $2,000 worth of Ajax shares c has a sister who is the financial vice-president of Ajax. d.owns $1,000 worth of the shares of Pericles Corporation, which is controlled by Ajax as a result of Ajax's ownership of 40 percent of Pericles's shares, and Pericles contributes 3 percent of the total assets and income in Ajax's financial statements MC 38 LO4 When a client's financial statements contain a material departure from a CA Canada Handbook Accounting Recommendation and the PA believes that disclosure is necessary to make the statements not misleading the PA a must qualify the audit report for a departure from GAAP. h can explain why the departure is necessary, and then give an unqualified opinion paragraph in the audit report. c must give an adverse audit report. d. can give the standard unqualified audit report with an unqualified opinion paragraph