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Question 17Question 18Question 19
/A con±ict of interest may occur if a member performs a professional service for a client or employer and the member orhis or her ²rm has a signi²cant relationship with another person, entity, product, or service that could, in the member'sprofessional judgment, be viewed by the client, employer, or other appropriate parties as impairing the member'sobjectivity. Which of the following situations could be viewed as impairing a member's independence?a) A member has a signi²cant ²nancial interest, is a member of management, or is in a position of in±uence in acompany that is a major competitor of a client for which the member performs management consulting services.b) A member has been asked to perform litigation services for the plaintiff in connection with a lawsuit ²led against aclient of the member's ²rm.c) A member provides tax or PFP services for several members of a family who have the same interests.d) A member refers a PFP or tax client to an insurance broker or other service providere) Both a. and b.f) Both c. and d.Lazar, a member, is preparing a tax return for Polanski for 20X9. Lazar has prepared tax returns for Polanski for twentyyears and a number of those returns have been audited, most recently for the year 20X7. There is a position on the20X9 tax return that is at odds with a tax treatment consented to in an administrative proceeding conducted onJohnson's 20X7 tax return. Is Polanski bound to follow the tax treatment of an item as consented to in an earlieradministrative proceeding?Which of the following investments is considered to be a direct ²nancial interest of a covered member?Question 20Question 21
Ryan & Ryan, CPA's is a full-service accounting ±rm that provides attest and nonattest services to a diverse group ofclients. Willard, the managing partner, has decided that it would be a good ±nancial move for the ±rm to buy a building,utilize a portion of the building for its own use, and lease the rest of the building to third parties. The other partners ofthe ±rm voted to accept Willard's proposal and on February 25, 20X6 the ±rm purchased a building for theaforementioned purposes. In which of the following situations would the ±rm's independence be impaired?