Question 1

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

Accepted Answer

A)  Tax planning services 
B)  Payroll tax processing services 
C)  The preparation of a request for a refund of previously overpaid taxes 
D)  Taxpayer advocacy in an IRS administrative hearing 
A)  Tax planning services 
B)  Payroll tax processing services 
C)  The preparation of a request for a refund of previously overpaid taxes 
D)  Taxpayer advocacy in an IRS administrative hearing

Question 2

Discuss the pros and cons of contingency fees from an accountant's standpoint.

Accepted Answer

Contingency fees can be both beneficial

Question 3

If a CPA charges a contingent fee in connection with providing professional services to a review client,the CPA's fee arrangement is:

Accepted Answer

A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the fee is reasonable in amount 
D)  Never permissible 
A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the fee is reasonable in amount 
D)  Never permissible

Question 4

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client,the CPA's fee arrangement is:

Accepted Answer

A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the CPA is not a member of the AICPA 
D)  Never permissible 
A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the CPA is not a member of the AICPA 
D)  Never permissible

Question 5

What is the policy rationale underlying the United States' rules governing the payment of facilitation payments?

Accepted Answer

Facilitation payments, also known as "gr

Question 6

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed.By doing so,the CPA has:

Accepted Answer

A)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
B)  Not jeopardized her professional license 
C)  Jeopardized her professional license if she also performed sales tax reporting services for that client during the same reporting period 
D)  Definitely jeopardized her professional license 
A)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
B)  Not jeopardized her professional license 
C)  Jeopardized her professional license if she also performed sales tax reporting services for that client during the same reporting period 
D)  Definitely jeopardized her professional license

Question 7

Discuss the pros and cons of contingency fees from a client's standpoint.

Accepted Answer

Contingency fees can be both beneficial

Question 8

Under insider trading rules applicable to publicly traded companies,an accountant is considered to be an "insider":

Accepted Answer

A)  Only if she Is a full-time accounting staff member of a company 
B)  Only if she is an internal auditor of a company 
C)  Only if she serves in a financial reporting oversight role 
D)  Even if she is only temporarily on the company's premises as an external auditor 
A)  Only if she Is a full-time accounting staff member of a company 
B)  Only if she is an internal auditor of a company 
C)  Only if she serves in a financial reporting oversight role 
D)  Even if she is only temporarily on the company's premises as an external auditor

Question 9

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

Accepted Answer

A)  Depreciation expense on real estate situated in foreign countries in which it does business 
B)  Travel and Entertainment Expense 
C)  Bonds Payable 
D)  The amortization of Bond Discounts and Premiums 
A)  Depreciation expense on real estate situated in foreign countries in which it does business 
B)  Travel and Entertainment Expense 
C)  Bonds Payable 
D)  The amortization of Bond Discounts and Premiums

Question 10

Mary,a CPA,accepted a fee from Rajiv,a CPA,for referring one of Mary's clients to him.Mary's client was not informed of this referral fee.Was Mary's acceptance of this fee permitted by applicable professional rules?

Accepted Answer

A)  Yes, if Rajiv possesses specialized skills that Mary lacked 
B)  Yes, if Rajiv possesses specialized skills that Mary lacks and Rajiv agreed to a non-contingent referral fee arrangement with Mary prior to provide services to the referred client 
C)  Yes, as long Mary's fee arrangement is a lump-sum amount rather than a percentage of the amount that Rajiv bills this client for his services
d) No 
A)  Yes, if Rajiv possesses specialized skills that Mary lacked 
B)  Yes, if Rajiv possesses specialized skills that Mary lacks and Rajiv agreed to a non-contingent referral fee arrangement with Mary prior to provide services to the referred client 
C)  Yes, as long Mary's fee arrangement is a lump-sum amount rather than a percentage of the amount that Rajiv bills this client for his services
d) No

Question 11

Which of the following would most likely be classified as a facilitation payment?

Accepted Answer

A)  A payment that encourages a high-ranking government official to facilitate a new business deal with a foreign supplier 
B)  A payment that encourages a lower-level government official to perform a routine service more rapidly than it otherwise would be performed 
C)  A payment that encourages a private-sector company to accelerate the delivery of goods or services in an international shipping transaction 
D)  A payment that provides a lawful commission to a foreign agent or representation to enable a plant or other operational facilities to bypass certain regulations established by the Foreign Corrupt Practices Act 
A)  A payment that encourages a high-ranking government official to facilitate a new business deal with a foreign supplier 
B)  A payment that encourages a lower-level government official to perform a routine service more rapidly than it otherwise would be performed 
C)  A payment that encourages a private-sector company to accelerate the delivery of goods or services in an international shipping transaction 
D)  A payment that provides a lawful commission to a foreign agent or representation to enable a plant or other operational facilities to bypass certain regulations established by the Foreign Corrupt Practices Act

Question 12

A musician believed that his record company was not paying him the agreed-upon royalty on all songs downloaded by fans from a well-known music Internet site.This musician hired a CPA to perform a royalty audit of the record company's sales revenues.The musician and the CPA agreed that that the CPA will be entitled to receive 5% of all amounts recovered by the musician as a result of this royalty audit.They also agreed to keep the results private.This arrangement is:

Accepted Answer

A)  Ethical 
B)  Unethical under all circumstances 
C)  Unethical if the amounts recovered exceed fair compensation for the CPA's time and effort 
D)  Unethical, unless a court or other administrative body, such as the American Federation of Musicians, approves of this fee arrangement 
A)  Ethical 
B)  Unethical under all circumstances 
C)  Unethical if the amounts recovered exceed fair compensation for the CPA's time and effort 
D)  Unethical, unless a court or other administrative body, such as the American Federation of Musicians, approves of this fee arrangement

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

Discuss the pros and cons of contingency fees from an accountant's standpoint.

If a CPA charges a contingent fee in connection with providing professional services to a review client,the CPA's fee arrangement is:

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client,the CPA's fee arrangement is:

What is the policy rationale underlying the United States' rules governing the payment of facilitation payments?

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed.By doing so,the CPA has:

Discuss the pros and cons of contingency fees from a client's standpoint.

Under insider trading rules applicable to publicly traded companies,an accountant is considered to be an "insider":

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

Mary,a CPA,accepted a fee from Rajiv,a CPA,for referring one of Mary's clients to him.Mary's client was not informed of this referral fee.Was Mary's acceptance of this fee permitted by applicable professional rules?

Which of the following would most likely be classified as a facilitation payment?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

Filters

Exam 6: Greed,corruption,and Collusion

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

Discuss the pros and cons of contingency fees from an accountant's standpoint.

If a CPA charges a contingent fee in connection with providing professional services to a review client,the CPA's fee arrangement is:

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client,the CPA's fee arrangement is:

What is the policy rationale underlying the United States' rules governing the payment of facilitation payments?

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed.By doing so,the CPA has:

Discuss the pros and cons of contingency fees from a client's standpoint.

Under insider trading rules applicable to publicly traded companies,an accountant is considered to be an "insider":

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

Mary,a CPA,accepted a fee from Rajiv,a CPA,for referring one of Mary's clients to him.Mary's client was not informed of this referral fee.Was Mary's acceptance of this fee permitted by applicable professional rules?

Which of the following would most likely be classified as a facilitation payment?

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

Filters