When a CPA pays a referral fee to be introduced to a client, this must be disclosed to the prospective client.

Group of answer choices

True

False

When serving as a testifying expert witness, an accountant may have a financial stake in the outcome of the court proceeding if such financial stake is disclosed to the opposing litigant.

Group of answer choices

True

False

Under the Code, which of the following exemplifies a Familiarity Threat for CPAs working in private industry?

Group of answer choices

Accepting an individuals work product with little or no review because that individual has produced an acceptable work product for several years.

Employing an immediate family member or close relative as the CPAs subordinate.

both a and b

neither a nor b

Materiality of a misstatement may depend on which of the following?

Group of answer choices

absolute size

relative size

whether it changes a profit into a loss

both a and b

all of the above

Question 251 pts

Which of the following may constitute a Material misstatement in a financial statement?

Group of answer choices

an omission

providing too much information

both a and b

neither a nor b