13. In which of the following instances would the independence of the CPA not to be considered to be impaired? The CPA has been retained as the auditor of a a. Municipality in which the CPA owns...

Extracted text: 13. In which of the following instances would the independence of the CPA not to be considered to be impaired? The CPA has been retained as the auditor of a a. Municipality in which the CPA owns P25,000 of the P25,000,000 in- debtedness of the municipality. b. Charitable organization in which an employcc of the CPA serve as treasurer. C. Company in which the CPA’s investment club owns one tenth interest. d. Cooperative apartment house in which the CPA owns an apartment and is not a part of management. 14. A CPA who performs primary actuarial services for a client would normally be precluded from expressing an opinion on the financial statements of that client if the a. Actuarial services are a major determinant of the pension expense. b. Fees for actuarial services have not been paid. c. Actuarial assumptions are not in accordance with generally accepted auditing standards. d. Client is an insurance company. 15. An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Obtain knowledge of matters that refer to the nature of the entity's business. b. Engage financial experts familiar with the nature of the business. c. First inform management that no unqualified opinion cannot be issued. d. Refer a substantial portion of the audit to another CPA will act as the principal auditor. 16. A CPA who is seeking to sell an accounting practice must a. Not allow a prospective purchaser to look at working papers and tax returns without permission from the client. b. Not allow a peer review team to look at working papers and tax returns with- out permission from the client prior to the consummation of the sale. c. Retain all working papers and tax returns for a period of time sufficient to satisfy the statute of litigation. d. Give all working papers and tax returns to the client.