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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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