t red 4 out of 2.0 question Which of the following family relationships is most likely to impair a CPA's independence with respect to a particular audit client on which the CPA works as a "covered member"? O a. A close relative has a material investment in that client of which the CPA is not aware. O b. A cousin has an immaterial investment in the client of which the CPA is aware. O c. The CPA's father is president of the audit client. Od. The CPA's spouse participates in a savings plan sponsored by the client. on 5 et ered out of 201 og question As higher acceptable levels of both audit risk and materiality are established, the auditor should audit individual accounts to: O a. Find smaller misstatements. O b. Find larger misstatements. Oc. Decrease the tolerable misstatement in the accounts. O d. Decrease the risk of assessing control risk too low. ation 6 yet vered ts out of 2.0. Flag question Which of the following is an element of a CPA firm's quality control system that should be considered in establishing its quality control policies and procedures? Oa. Complying with laws and regulations. O b. Using statistical sampling techniques. Oc Managing human resources. Od. Considering audit risk and materiality