3. On August 29, 2020, Mar Bonafe, CPA, was offered and accepted the engagement to audit the annual financial statements of ABC Corporation for the fiscal and calendar year ended Dec, 31, 2020. The audit began on Sept. 15, 2020, and ended on March 17, 2021. ABC Corporation is regulated by the SEC. Bonafe served as controller of ABC Corporation from Nov. 5, 2013 until Jan. 12, 2020 at which time he terminated his employment with ABC. Mar Bonafe owned a material amount of ABC Corporation ordinary or common shares from Nov. 5, 2013 until Aug, 15, in 2020, at which time he sold the shares. Is Mar Bonafe violation of the Code of Ethics due to
3. On August 29, 2020, Mar Bonafe, CPA, was offered and accepted the engagement to audit the annual financial statements of ABC Corporation for the fiscal and calendar year ended Dec, 31, 2020. The audit began on Sept. 15, 2020, and ended on March 17, 2021. ABC Corporation is regulated by the SEC. Bonafe served as controller of ABC Corporation from Nov. 5, 2013 until Jan. 12, 2020 at which time he terminated his employment with ABC. Mar Bonafe owned a material amount of ABC Corporation ordinary or common shares from Nov. 5, 2013 until Aug, 15, in 2020, at which time he sold the shares. Is Mar Bonafe violation of the Code of Ethics due to
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 18CE
Related questions
Question
![23. On August 29, 2020, Mar Bonafe, CPA, was offered and accepted the engagement to audit the
annual financial statements of ABC Corporation for the fiscal and calendar year ended Dec, 31,
2020. The audit began on Sept. 15, 2020, and ended on March 17, 2021. ABC Corporation is
regulated by the SEC. Bonafe served as controller of ABC Corporation from Nov. 5, 2013 until
Jan. 12, 2020 at which time he terminated his employment with ABC. Mar Bonafe owned a
material amount of ABC Corporation ordinary or common shares from Nov. 5, 2013 until Aug, 15,
2020, at which time he sold the shares. Is Mar Bonafe violation of the Code of Ethics due to
in](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa436899f-be20-4713-94fe-6cebb5db7a6e%2Fb0935670-1e28-45cb-b71c-104eef2fa984%2Fqppyvjh_processed.png&w=3840&q=75)
Transcribed Image Text:23. On August 29, 2020, Mar Bonafe, CPA, was offered and accepted the engagement to audit the
annual financial statements of ABC Corporation for the fiscal and calendar year ended Dec, 31,
2020. The audit began on Sept. 15, 2020, and ended on March 17, 2021. ABC Corporation is
regulated by the SEC. Bonafe served as controller of ABC Corporation from Nov. 5, 2013 until
Jan. 12, 2020 at which time he terminated his employment with ABC. Mar Bonafe owned a
material amount of ABC Corporation ordinary or common shares from Nov. 5, 2013 until Aug, 15,
2020, at which time he sold the shares. Is Mar Bonafe violation of the Code of Ethics due to
in
![impairment of independence?
a. Yes, because Mar Bonafe owned ABC shares at the start of the audit for Dec. 31, 2020.
b. Yes, because Mar Bonafe served as a controller for ABC in previous years.
c. Yes, because Mar Bonafe had an employment relationship with the client during part of the
periods covered by the financial statements.
d. Yes, because it is still less than a year since Mar Bonafe has owned shares in ABC.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa436899f-be20-4713-94fe-6cebb5db7a6e%2Fb0935670-1e28-45cb-b71c-104eef2fa984%2Fudrhivd_processed.png&w=3840&q=75)
Transcribed Image Text:impairment of independence?
a. Yes, because Mar Bonafe owned ABC shares at the start of the audit for Dec. 31, 2020.
b. Yes, because Mar Bonafe served as a controller for ABC in previous years.
c. Yes, because Mar Bonafe had an employment relationship with the client during part of the
periods covered by the financial statements.
d. Yes, because it is still less than a year since Mar Bonafe has owned shares in ABC.
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