Under the ethical standards of the profession, which of the following situations involving nondependent members of an auditor's family is most likely to impair the independence of an individual participating in an audit engagement?

a. A parent's immaterial investment in a client
b. A first cousin's loan from a client
c. A spouse's employment with a client
d. A sibling's loan to a director of a client

Ans: c. A spouse's employment with a client

Business

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If you have strongly negative information to deliver as part of a positive message, you should

A) open with the negative information. B) use the indirect approach. C) put the negative information in a separate message. D) apologize for having to spoil the moment. E) put it at the beginning of the message.

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What does it mean when a tax code is convex?

A) It is a flat tax and does not vary as taxable income varies. B) It is regressive and taxes lower incomes more. C) Is proportional and the rate always taxes at proportional income equivalents. D) It imposes a higher rate on higher incomes and a lower rate on lower incomes.

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