For a CPA who performs auditing services,the most significant conflict of interest that is likely to arise is between:
A) Two clients who both sell the same product in different geographic markets
B) Two clients who both are aggressively pursuing sales to the same prospective customer
C) The client's interest and the public interest
D) The CPA's interest and another CPA's interests

Question

Quizplus · Accepted Answer

A CPA performing auditing services must maintain independence and objectivity in making judgments and issuing opinions. The significant conflict of interest in this context arises between the client's interests (including retaining the CPA for future business) and the public interest (including providing accurate and reliable financial information to stakeholders). The CPA must prioritize the public interest over the client's interests. Conflicts between clients' interests are also a concern, but not as significant as the conflict between the client's interest and the public interest.

For a CPA Who Performs Auditing Services,the Most Significant Conflict