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NEW QUESTION: 1
Jackson & Company, CPAs, plan to audit the financial statements of Perigee Technologies, an issuer as
defined under the Sarbanes-Oxley Act of 2002. Which of the following situations would impair Jackson's
independence?
A. Provision of personal tax services to Johnson, the accounts payable manager of Perigee.
B. An audit of Perigee's internal control is performed contemporaneously with the annual financial
statement audit.
C. Discovering that Lowe, the chief financial officer of Perigee, started his accounting career ten years
earlier as a staff accountant for Jackson & Company, and continues to maintain ties with current
partners at the firm.
D. Preparation of Perigee's routine annual tax return, where Jackson's fee will be calculated as a
percentage of the tax refund obtained.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. The provision of services involving contingent fee arrangements impairs the auditor's
independence.
Choice "A" is incorrect. Personal tax services provided to employees do not impair the auditor's
independence; however, personal tax services provided to corporate officers or their families would impair
independence.
Choice "C" is incorrect. Independence is not impaired by the performance of an audit of Perigee's internal
control; in fact, such services are required by PCAOB Auditing Standard No. 5 (covered in a later class).
Choice "D" is incorrect. The prohibition against auditing companies whose corporate officers worked for
the auditing firm only applies if those officers worked on the audit during the preceding year.

NEW QUESTION: 2

A. Option C
B. Option B
C. Option D
D. Option A
Answer: A
Explanation:
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NEW QUESTION: 3
CORRECT TEXT

If bicyclist B were to travel at his same rate of speed for 10 hours, how many miles would he travel?
Answer:
Explanation:
50miles


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