Exam 3: Professional Ethics

Which of the following is least likely to impair a CPA firm's independence with respect to a nonpublic audit client in the Oklahoma City office of a national CPA firm?

The AICPA Conceptual Framework for Independence requires that CPAs evaluate whether a particular threat would lead which type of person to conclude that an unacceptable risk of non-independence exists?

Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client?

Auditors are periodically punished for holding an investment in a client. This violates which ethical rule?

When a threat to independence arises, an auditor should consider:

AICPA independence requirements suggest that a CPA should evaluate whether a particular threat to independence would lead a reasonable person, aware of all the relevant facts, to conclude that:

CPAs may not advertise as to any special expertise other than in accounting, auditing, and tax.

Contingency fee based pricing of accounting services is:

The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA.

Competence as a certified public accountant includes all of the following except:

The communications between CPAs and their clients are privileged under federal law.

As compared to the AICPA Code of Professional Conduct, IFAC's International Code of Ethics for Professional Accountants:

The AICPA Code of Professional Conduct states that a CPA shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client. This rule should be understood to preclude a CPA from responding to an inquiry made by:

While performing an audit of a public company, the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them. The auditors' reason for resignation should be disclosed through: Item CPA Direct Communication With Shareholders The Process of Filing a Fom 8-K A. Yes Yes B. Yes No C. No Yes D. No No

A client company has not paid its 20X3 audit fees. According to the AICPA Code of Professional Conduct, in order for the auditor to be considered independent with respect to the 20X4 audit, the 20X3 audit fees must be paid before the:

The following is a list of circumstances that might be faced by a public accounting firm. Select the rule violated of the AICPA Code of Professional Conduct in the second column. If no rule is violated select 10-no violation (this may be used once, more than once, or not at all). Rules 1 through 9 may be used either once, or not at all.

CPAs are allowed to advertise under the Rules of the AICPA Code of Professional Conduct. a. List the general guidelines regarding the nature of acceptable advertising. b. Describe two specific forms of unacceptable advertising.

Which of the following forms of organization is most likely to protect the personal assets of any partner or shareholder who has not been involved on an engagement resulting in litigation?

Which of the following types of employees must be independent of an audit client?

Which of the following is not a broad category of threat to auditor independence?