Which of the following is NOT an example of a conflict situation for CPAs in business that may lead to subordination of judgment?
A) Making or permitting or directing another party to make, materially false and misleading entries in an entity's financial statements or records
B) Failing to correct the entity's financial statements or records that are materially false and misleading when the CPA has the authority to record the entries
C) Signing, or permitting or directing another to sign, a document containing materially false and misleading information.
D) Preparing the financial statements and auditing the same work

Question

Quizplus · Accepted Answer

Preparing the financial statements and auditing the same work is not a conflict situation that may lead to subordination of judgment. This situation may lead to independence impairments and violations of ethics rules, but not necessarily to subordination of judgment. A, B and C are all situations where the CPA may be pressured to compromise their professional judgment and ethics by intentionally or negligently misrepresenting the entity's financial information.

Which of the Following Is NOT an Example of a Conflict