Which of the following is incorrect regarding

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11. Which of the following is incorrect regarding independence? a. Independence consists of independence of mind and independence in appearance. b. Independence of mind is the state of mind that permits the provision of an opinion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional skepticism. c. Independence in appearance is the avoidance of facts and circumstances that are so significant a reasonable and informed third party, having knowledge of all relevant information, including any safeguards applied, would reasonably conclude a firm's or a member of the assurance team’s integrity, objectivity or professional skepticism had been compromised. d. Independence is a combination of impartiality, intellectual honesty and a freedom from conflicts of interest. 12. A financial interest beneficially owned through a collective investment vehicle, estate, trust or other intermediary over which the individual or entity has no control. 13. A combination of impartiality, intellectual honesty and a freedom from conflicts of interest.
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Page 3 of 21 14. Lead engagement partner is I. The partner responsible for signing the report on the consolidated financial statement of the audit client. II. Where relevant, the partner responsible for signing the report in respect of any entity whose financial statements form part of the consolidated financial statements and on which a separate stand-alone report is issued. III. When no consolidated financial statements are prepared, the partner responsible for signing the report on the financial statements. 15. A distinct sub-group, whether organized on geographical or practice lines. a. Office c. Firm b. Practice d. Network firm 16. The Code of Ethics for Professional Accountants in the Philippines defined “practice” as a. A distinct sub-group, whether organized on geographical or practice lines. b. An entity under common control, ownership or management with the firm or any entity that a reasonable and informed third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or internationally. c. Any service requiring accountancy or related skills performed by a professional accountant including accounting, auditing, taxation, management consulting and financial management services. d. A sole proprietor or a partnership of professional accountants which offers professional services to the public.
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  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

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