Exam 3: Professional Ethics

An audit independence issue might be raised by the auditor's participation in consulting services engagements. Which of the following statements is most consistent with the profession's attitude toward this issue?

When an accountant is not independent, the accountant is precluded from issuing a:

The Sarbanes-Oxley Act of 2002 placed significant restrictions on the types of consulting that may be performed by auditors for their public company audit clients. a. List four types of services that are prohibited by the Act. b. List three types of general consulting activities that would impair the auditors' independence based on the AICPA Code of Professional Conduct.

Independence is required of a CPA performing:

Which of the following forms of advertising would most likely be considered a violation of the AICPA Code of Professional Conduct?

Which of the following acts by a CPA would most likely be considered a violation of the AICPA Code of Professional Conduct?

Independence of a CPA with respect to a client is not impaired if:

CPAs can advertise the fees only for their nonattest services.

An accounting association established a code of ethics for all members. The most likely primary purpose for establishing the code of ethics was to:

Which of the following is considered a type of threat to compliance with the Rules of the Code of Professional Conduct?

ABC Company is audited by the Phoenix office of Willingham CPAs. Which of the following individuals would be least likely to be considered a "covered member" by the independence standard?

Which of the following organizations issue international ethics standards for auditors?

An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA.

Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct.

The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors.

A CPA sole practitioner 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 were not material to the CPA but were material to the child's personal net worth. Would the independence of the CPA be considered to be impaired with respect to the client?

Financial interests of a CPA's nondependent children are attributed directly to the CPA.

In determining the scope and nature of services to be performed in public practice, a CPA firm should:

The concept of materiality would be least important to an auditor when considering the:

If the AICPA Code of Professional Conduct does not specifically address a threat to auditor independence, the auditor should: