Exam 14: Professional Ethics

An interpretation of the Acts Discreditable Rule would not include

Violet,CPA,audits Big Bank,a local financial institution.Which of the following would most likely impair Violet's independence with regard to Big Bank?

Which of the following is NOT one of the AICPA Principles of Professional Conduct?

Julie and Lisa are sisters.Julie is a CPA auditing the company where Lisa works.Julie's independence is impaired if

According to the profession's ethical standards,an auditor would be considered independent in which of the following instances?

Which of the following philosophical theories places emphasis on the consideration of projecting the consequences of a choice in terms of this question: "What may be the consequences of similar persons making this choice in similar circumstances?"

What agency has the ultimate authority in defining independence for public companies?

To which group can a CPA provide audit documentation without being subpoenaed and without the client's consent?

Ben Big is a partner in the Cleveland office of the national accounting firm of Price Brickhouse.He owns 1,000 shares of common stock in Public,Inc.,an audit client of the firm.This amount is not material to his personal investments.The Public,Inc.audit is done out of the New York office.Ben Big has not informed the firm that he owns the shares because he is not on the audit and it is not done out of the Cleveland office. Required: The situation above involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number,but should clearly describe the rule in question.

For each of the following cases indicate if the action by a member CPA is a violation of the AICPA Code of Professional Conduct and cite the relevant rule. A.Disclosed client information to another CPA firm during the discussion of a merger of the two firms. B.Allow a company to change the way it values inventory to a method that is not GAAP because following GAAP would be misleading. C.Had a new car loan from a bank that is a client when the bank holds the title to the car. D.Based fee on approval of a bank loan dependent upon audited financial statements. E.Did not comply with "Government Auditing Standards on a government audit." Inetter $\quad$$\quad$$\quad$ Relevant Rule $\quad$$\quad$$\quad$ Violation? (Yes/No)

Which of the following is NOT a restriction placed on audit partners by Sarbanes-Oxley?

The General Standards Rule requires a member to comply with standards and interpretations.Which of the following is NOT a standard covered by this Rule?

According to the ethical standards of the profession,which of the following acts is generally prohibited?

Which of the following defines the imperative principle of ethics?

For each of the following cases indicate if the action by a member CPA is a violation of the AICPA Code of Professional Conduct and cite the relevant rule. A.Was a trustee of client's profit-sharing trust. B.Accepted referral fees from local attorneys for nonattest clients with the clients' knowledge. C.Performed audit in accordance with GASB standards. D.Advises client to have an insurance review from a local insurance company in which the CPA has a material financial interest. E.Promoted tax service on local TV station. Inetter $\quad$$\quad$ Relevant Rule $\quad$$\quad$ Violation? (Yes/No)

An audit client hires a member of the audit engagement team to be its new controller.Sarbanes-Oxley rules require that:

The Confidential Client Information Rule has been interpreted by the AICPA to explicitly allow a CPA to divulge confidential client information to

According to the ethical standards of the profession,which of the following acts is generally prohibited?

Which of the following is NOT included in the Integrity and Objectivity Rule?

What are (a)the AICPA Principles of Professional Conduct,(b)Rules of Conduct,and (c)Interpretation of Rules of Conduct?