A CPA is most likely to be held to the standards of a fiduciary when she:
A) Performs tax accounting services
B) Serves as investment fund manager
C) Performs attest services other than audits
D) Performs audits

Question

Quizplus · Accepted Answer

Serving as an investment fund manager involves managing other people's money, which creates a fiduciary relationship where the CPA is required to act in the best interests of the investors. As a result, a CPA acting as an investment fund manager is held to the highest standard of care and must put the interests of the clients ahead of their own. While performing audits and providing attest services may involve considerable professional responsibilities, they do not generally create a fiduciary relationship between the CPA and the clients. Similarly, performing tax accounting services may require a high level of professional judgment, but it does not typically involve a fiduciary duty to clients.

A CPA Is Most Likely to Be Held to the Standards