A CPA audits Amberset Corporation.This CPA has been named to serve as the trustee of a trust fund that a client set up for the benefit of her grandchildren.The client is the majority shareholder of Amberset Corporation,and Amberset stock is one of the trust's assets.The CPA potentially retains the independence to continue to audit Amberset Corporation only if:
A) The CPA is a co-trustee and there are at least three co-trustees
B) Amberset is a publicly-traded corporation
C) The CPA does not directly own any Amberset stock
D) The CPA refuses to serve as this client's trustee

Question

Quizplus · Accepted Answer

The CPA must refuse to serve as the client's trustee to maintain independence, as serving as a trustee for a trust that holds stock in the audited company creates a conflict of interest.

A CPA Audits Amberset Corporation