Status as a "Covered Member" Is Important in Determining Independence

Status as a "covered member" is important in determining independence because CPAs who are classified as a "covered member" lack the independence to conduct an audit if:

A) They have an indirect ownership interest in even a single share of stock outstanding in an audit client
B) They refuse to subordinate their best judgment to the wishes of their client
C) Their college-age, dependent child works in the client's warehouse during the summer as a shipping clerk
D) Their sister is an attorney who works as the company's General Counsel

Correct Answer:

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