11. Which of the following statements would least likely appear in an auditor's engagement letter? (A) Our engagement is subject to the risk that material errors or fraud, including defalcations, if they exist, will not be detected. (B) After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement. (C) Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses. (D) Arrangements to be made with the predecessor auditor.

15. A CPA purchased stock in a client corporation and placed it in a trust as an educational fund for the CPA's minor child. The trust securities are not material to the CPA's wealth but are material to the child's personal net worth. According to the AICPA Code of Professional Conduct, would this action impair the CPA's independence with the client? (A) Yes, because the stock would be a direct financial interest and materiality is a factor. (B) No, because the CPA would not have a direct financial interest in the client. (C) Yes, because the stock would be a direct financial interest and materiality is not a factor. (D) Yes, because the stock would be an indirect financial interest and materiality is not a factor.

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