Sloan and Baldwin are partners in Hope & Hope, CPAs, a one-office public accounting firm. Sloan has invested in a Section 529 savings plan for the benefit of his oldest child who will be starting college in a few years. Meanwhile, Baldwin’s spouse has invested in a Section 529 prepaid tuition plan for their daughter who will start college next year. Both of the plans have invested in stock of Mata Co.
If Mata became an audit client of Hope & Hope, which of the following is CORRECT?
The investment by the savings plan, but not the investment by the prepaid tuition plan in Mata Co. stock would be considered a direct financial interest in Mata.
The investment by the prepaid tuition plan, but not the investment by the savings plan in Mata Co. stock would be considered a direct financial interest in Mata.
The investments by the prepaid tuition plan and the savings plan in Mata Co. stock would not be considered direct financial interests in Mata Co.
The investments by the prepaid tuition plan and the savings plan in Mata Co. stock would be considered direct financial interests in Mata Co.
