True Flase Flashcards
Firms may maintain depository accounts at a bank that is an attest client if they conclude that the likelihood is remote that the bank will experience financial difficulties.
True
Individual covered members may maintain such accounts if the balance in the depository account is fully insured,
True
Individual covered members may maintain such accounts if any uninsured amounts were not material to the covered member’s worth
True
Individual covered members may maintain such accounts If uninsured accounts are considered material, they are reduced to an immaterial amount within 30 days of becoming material.
True
Generally, a covered member’s brokerage account at an attest client broker-dealer would not impair independence
False
A a covered member’s brokerage account at an attest client broker-dealer would not impair independence if attest client’s services were rendered under the attest client’s normal terms, procedures, and requirements.
False
A covered member’s brokerage account at an attest client broker-dealer would not impair independence if any covered member’s assets subject to the risk of loss are immaterial to the covered member’s net worth.
Fasle
A covered member’s brokerage account at an attest client broker-dealer would not impair independence if attest client’s services were rendered under the attest client’s normal terms, procedures, and requirements and any covered member’s assets subject to the risk of loss are immaterial to the covered member’s net worth.
True
A. An insurance policy is not a financial interest unless it offers an investment option.
True
If there is an investment option in Insurance policy, there would still not be an independence problem if the covered member bought the policy under normal terms and conditions, unless the covered member had the authority to supervise or participate in the investment decision and the covered member invested in an attest client.
True
If there is an investment option in Insurance policy, there would still not be an independence problem if the covered member bought the policy under normal terms and conditions, unless the covered member had the ability to select the policy’s underlying investments or
True
If a covered member borrows from (or loans to) an attest client or any of its officers, directors, or 10% owners, there is likely an independence problem, especially if the client is not a lending institution.
True
If a covered member keeps payments current and otherwise complies with loan or lease terms, auto loans and leases collateralized by the car do not impair independence.
True
Even if a covered member keeps payments current and otherwise complies with loan or lease terms, Loans fully collateralized by cash surrender value of an insurance policy impair Independence.
False
If a covered member keeps payments current and otherwise complies with loan or lease terms, Loans fully collateralized by cash deposits at the same lending institutions (e.g., passbook loans) do not impair independence.
True