CPA Kara Rambo is the auditor of Ajax Corporation. Her audit independence will not be considered impaired if shea. Owns $1,000 worth of Ajax stock. b. Has a husband who owns $1,000 worth of Ajax stock. c. Has a sister who is the financial vice president of Ajax. d. Owns $1,000 worth of the stock of Pericles Corporation, which is controlled by Ajax as a result of Ajax’s ownership of 40 percent of Pericles’ stock, and Pericles contributes 3 percent of its total assets and income in Ajax’s financial statements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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CPA Kara Rambo is the auditor of Ajax Corporation. Her audit independence will not be considered impaired if she
a. Owns $1,000 worth of Ajax stock.

b. Has a husband who owns $1,000 worth of Ajax stock.

c. Has a sister who is the financial vice president of Ajax.

d. Owns $1,000 worth of the stock of Pericles Corporation, which is controlled by Ajax as a result of Ajax’s ownership of 40 percent of Pericles’ stock, and Pericles contributes 3 percent of its total assets and income in Ajax’s financial statements.

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